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Argentina, Mexico Revamp Auto Trade Pact
Mexico has agreed to amend its free-trade agreement with Argentina by reducing its auto exports to the South American country by one-third to $600 million annually for three years.
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Mexico has agreed to amend its free-trade agreement with Argentina by reducing its auto exports to the South American country by one-third to $600 million annually for three years.
Mexico also agreed to drop a broader non-auto trade complaint against Argentina before the World Trade Organization.
The resolution ends a standoff that has disrupted auto shipments between the two countries since June. At that time Argentina suspended its auto trade accord with Mexico for three years and levied a 35% duty on cars imported from that country. Mexico retaliated by suspending duty preferences on autos made in Argentina.
Their trade spat followed a similar dispute between Brazil and Mexico. The earlier disagreement was resolved when Mexico agreed to limit its auto exports to Brazil by 30% for three years. Argentina aimed to wrest similar concessions from Mexico.
Mexico has become increasingly popular with the world's major carmakers as a low-cost manufacturing base for exports throughout the region. Argentina and Brazil say they imposed sanctions earlier this year to protect their domestic auto industries from a flood of cheap imports from Mexico.
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