Brazil expands automotive agreement with Argentina and eliminates import tariffs

Geraldo Alckmin signed a decree that expands the automotive agreement between Brazil and Argentina and eliminates tariffs on auto parts.

The measure eases market access conditions between the two countries for buses, vans, and trucks of up to 5 tons. Additionally, it eliminates the import tariffs on auto parts not produced in Brazil.
“This is a measure that improves the automotive agreement between Brazil and Argentina, facilitates trade, reduces costs, and increases the competitiveness of Brazilian industry,” said Alckmin.

The decree incorporates the 46th protocol into ACE-14, following negotiations involving the Ministry of Development, Industry, Trade and Services (MDIC) and the Ministry of Foreign Affairs (MRE).
The new protocol also updates the classification of products and improves the rules of origin criteria, which determine whether an item is truly manufactured in one of the two countries. According to the government, the updates promote greater legal certainty in bilateral transactions.

Companies that use the zero-tariff benefit for importing auto parts are required to invest 2% of the import value in research, innovation, or priority industrial programs for the automotive sector.

Automotive sector grows in Brazil
The acting president highlighted the sector’s strength and the contribution of the Green Mobility and Innovation Program (Mover) to its development. Mover, which offers R$19.3 billion in incentives through 2028, has spurred private investment announcements totaling R$140 billion.

“Today, the Brazilian automotive sector ranks 8th in global vehicle production and generates more than 1 million direct and indirect jobs. Last year, it recorded a 14.1% growth in sales,” said Alckmin.
The MDIC states that automotive products are the main goods in trade flows between Brazil and Argentina. Bilateral trade in these goods reached US$13.7 billion in 2024, accounting for 50% of the total US$27.4 billion traded that year.

By May 2025, total trade between Brazil and Argentina had already reached US$12.6 billion, representing a 26.2% increase compared to the same period in 2024.

Source: Money Times

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