Uruguay and Argentinacontinue to consolidate their commercial relations, now with a gesture from the local government that involved the elimination of a tax to the import of tires which will allow the placement of this product by the neighboring country in Uruguayan territory.
On June 28th, Uruguay removed the Global Tariff Rate of the 16% that since 2007 was applied to the import of tires produced in Argentina; something that hindered the placement of this product due to the increase in costs that the tax entailed. In this way, a conflict that had been going on for more than 15 years regarding trade between both countries was also resolved.
The measure was taken from the Decree 175/24celebrated since the Chancellery headed by Diana Mondino. According to the government leader of Javier Milei“novelty implies the Reopening of the Uruguayan marketprovides new business opportunities for Argentine tire producers and represents another important step in the normalization of trade relations between both countries.”
According to the official Argentine statement, “Uruguay’s decision to lift the protectionist measure is based on the recognition that Argentina, By repealing Law 25,626, it has complied with the Mercosur award of 2007 on the prohibition of the import of remolded tyres from Uruguay”.
“In 2006, before the implementation of the differential rate, foreign purchases of tires Uruguay had risen to $12.9 million, with $2.7 million originating from Argentina. Last year, total purchases reached $34 million, but only $365,000 came from Argentina”, The Foreign Ministry of the neighbouring country said that it hopes to recover an important market in the local territory.
The blue dollar continues to advance in Argentina
At the worst moment of the price gap between Uruguay and Argentina, due to the huge exchange rate difference between both countries, the tires They were one of the few products that were still worth buying in the country.
Now, the gap is once again a concern that looms on the horizon due to the escalation that the blue or parallel dollar has been experiencing in the neighboring country. In this regard, on Tuesday it took a new leap and reached a new record, at a time when thousands of Uruguayans are moving to the neighboring country due to the winter holidays.
Although the Dolar blue began to fall today, far from the upward trend of recent days, remains above 1,400 Argentine pesos, according to a survey by Ambit in Argentina.
According to data from Migrationsduring the first weekend of the winter holidays, 81,000 people left the Uruguayof which 60,000 did so through border posts with Argentina. The departures continued in the first days of this week, which is the first of two weeks of winter break.
Source: Ambito
