Brazilian cars stuck in Argentine ports following import barrier

Around ten thousand vehicles produced in Brazil are waiting in Argentine ports for authorization to enter the neighboring country.

The delay is due to barriers imposed by the government of Alberto Fernández on imports, aimed at preventing the outflow of dollars from Argentine reserves.

According to the latest data from Argentina’s National Institute of Statistics, in August, the country’s total imports were 12.4% lower than in the same period last year.

Vehicle imports fell by 17.8% in the first eight months of the year compared to 2022, and when compared to August alone, one of the months with the most restrictions this year, the decline was a staggering 88.1%.

These restrictions heavily affect Brazil, which produces about 80% of the cars imported by Argentina.

Argentine citizen Francisco Olivera shares that he needed to buy a new car but was informed at the dealership that he would have to wait several months for the model he wanted, which was manufactured in Brazil.

“They told us that the earliest delivery date was May next year,” says Francisco.

In addition to being placed on a waiting list, there was uncertainty about the cost of the car when it entered the country. The solution was to choose a different brand and model.

“In the end, since I had to buy a car, I had to get one that I didn’t want, but it was what was available,” he adds.

As of September, about 20,000 vehicles manufactured in Brazil had got stuck in Argentine ports awaiting authorization to enter the neighboring country.

Today, the National Association of Automotive Vehicle Manufacturers (Anfavea) estimates that around 10,000 units are still awaiting clearance.

“About 50% of the cars have not been approved for import; entry is still pending. This means that certain products, especially those coming from Brazil, are in short supply,” explains Horacio Jack, director of the Argentine Dealers Association.

With a shortage of imported cars, some used cars are more expensive than brand-new ones.

“What’s the value of a liter of water in the middle of the Sahara? You have a more restricted market with fewer units and fewer choices. You have two options: either you buy what’s available in this market, or you go to the used car market, which is much larger, find the product you would like to have brand new, and try to find the newest one possible. And you pay for it,” evaluates Alejandro Lamas, the Argentine Automotive Chamber of Commerce secretary.

The government reached an agreement with automakers to release some of the vehicles waiting to enter the country. The cars should be imported with their own dollars rather than the official exchange rate, which would be cheaper.

At least one model from each brand will have its price frozen until the end of this month, when the presidential elections should take place.

However, the restrictions are also concerning other goods and services sectors, and business owners are reorganizing their inventories and manufacturing processes that rely on imported goods.

“Companies are adjusting their production levels and plant utilization based on when inputs arrive, without being able to plan it normally,” explains Federico Amos, president of the Argentine-Brazilian Chamber of Commerce.

Source: CNN Brasil

Click here to read the original news report: https://www.cnnbrasil.com.br/economia/carros-brasileiros-se-acumulam-em-portos-da-argentina-apos-barreira-na-importacao/

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