The current rules of the game they were set in 2019, when it was decided not to release trade borders as planned. In these cases, it is always the Argentina is the one that seeks to stop the bilateral opening before the power of the Mexican industry and its greater competitiveness. The latest studies show that manufacturing a 0km in that country is 65% cheaper than doing it in Argentina. The main reason is the high local tax pressure.
The bid between the governments of the two countries is focused on the expansion or reduction of the current quota. According to sources participating in the negotiations, everything is aimed at maintaining the current level of trade or slightly reducing it. In any case, the effect would be neutral since in recent years the authorized amount was not consumed.
Car Dealerships 0km
Mariano Fuchila
In addition, the discussion hides a further bid in the background. In 2019, Mexico had promised to increase purchases of other items, in exchange for Argentina now accepting free automotive trade. From the Ministry of Productive Development, which leads Matías Kulfas, consider that the North American country did not comply with that part of the agreement which justifies the Argentine rejection of greater automotive opening.
The signed protocol In 2019, it established an import quota without tariff for each country for US$701 million for that year, of US$737 million for 2020 and US$774 million in 2021. The brands that most use this quota, to import or export, are Ford, Volkswagen, Nissan, GM, Fiat and Jeep.
Source: Ambito
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