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Brazil, Argentina Adjust Trade Rules on Cars, Parts
Argentina and Brazil have modified bilateral trade rules governing cars and auto parts shipped between the two countries, Bloomberg News reports.
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Argentina and Brazil have modified bilateral trade rules governing cars and auto parts shipped between the two countries, Bloomberg News reports.
The partners agreed to extend their existing pact for a year. But they altered a trade ratio required to trigger tax exemptions for both countries. Argentina will be required to import only $1.50 worth of automotive goods from Brazil for every $1 it exports to that country. The previous ratio was 1.95:1.
Bloomberg notes that Brazil's cooling economy caused a 39% drop in its May imports of Argentina's locally made Ford, Renault and Volkswagen vehicles.
The countries intend to develop a new five-year pact to take effect in July 2015. The agreement will fix the relative share of each country's total auto imports that may be supplied by the other. Bloomberg says the deal would allow Brazil to account for 44% of Argentina's auto imports as long as Argentina's share of Brazil's auto imports is at least 11%.
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