EU Protests Trade Barriers in Argentina, Brazil

The European Commission has complained to the World Trade Organization and the governments of Argentina and Brazil about "protectionist trade measures" those countries place on imports of autos and auto parts.

The EC says it hopes to resolve the issues with the two counties. But it doesn't rule out filing a claim with the WTO.

Argentina imposed a requirement on Feb. 1 that auto suppliers must submit extensive documentation before their parts shipments are allowed into the country.

CLEPA, the European auto supplier trade group, says some of its members have shipments of nearly 914,000 reals (€380,000) awaiting authorization. The group says some suppliers have suspended imports because of the rule.

Brazil began levying a 30% duty in September on imported vehicles with less than 65% content sourced in the Mercosur trade bloc (Argentina, Brazil, Paraguay and Uruguay) and Mexico. CLEPA notes that Sao Paulo was already imposing 14%-18% tariffs on EU-made auto parts.

The EC also complains that suppliers with operations in Brazil must conduct key manufacturing processes there and invest at least 0.5% of their gross sales in local R&D.