Manufacturing companies of auto parts They demanded that the government completely eliminate the withholdings for export, as a way to gain competitiveness and improve export performance.
In fact, the trade balance of auto parts companies registered a decline in the first half of this year deficit of US$4.06 billion.
The glass half full indicates that this figure implies a reduction of 10.9% in commercial red compared to the same period in 2023. The empty half indicates that this reduction was achieved due to the negative impact of the recession on the level of imports.
According to the most recent report prepared by the Argentine Association of Component Factories (AFAC), exports, for their part, fell by 1.8%closing the period analyzed at US$635 million.
In this report, the chamber that groups together companies in the sector took the opportunity to update a historical claim. “Foreign sales of auto parts require a substantial improvement in competitiveness, taking as a starting point the total elimination of export duties”he noted.
In addition, they asked a regulation of the RIGI regime that encourages and promotes higher levels of local content in auto parts through supplier development that strengthens business relationships.
“The inclusion of new investment projects for vehicles with new technologies poses the challenge of (appropriate) regulation of the RIGI.”
Foreign trade figures for auto parts in the first half of the year
Imports of auto parts decreased by 9.7% year-on-year during the first half of 2024reaching US$4,694 million, against the US$5,201 million recorded during January-June 2023.
Analyzing vehicle production, 216,736 units were manufactured during the period January-June 2024, 26.7% less compared to 2023. This drop was accompanied by imports of auto parts, but to a much less pronounced extent.
As for Argentina’s main trading partners in the sector, there were no major changes. Brazil is still in the leadwith a trade deficit of US$1,205 million (imports of US$1,618 million and exports of US$413 million).
This is followed by the European Union bloc, with a negative balance of US$844 million (US$902 million in imports and US$58 million in exports); Thailand, with a deficit of US$540 million (imports of US$541 million and exports of US$401,648); Japan with a trade deficit of US$384 million (imports of US$384 million and exports of US$355,994).
Finally, trade with the United States has accumulated a deficit of US$318 million (US$352 million in imports and US$34 million in exports).
Regarding the main items traded, the report indicates that they were “Transmissions” (deficit of US$936 million, due to US$1,167 million in imports and US$232 million in exports); “Engine components” (deficit of US$602 million, due to US$697 million in imports and US$95 million in exports); and “Electric” (red of US$646 million, due to US$666 million in imports and US$20 million in exports).
Source: Ambito
