Colombia declines to renew auto pact, Brazilian vehicle exports set to lose tax-free access

The bilateral automotive trade agreement between Brazil and Colombia was not renewed due to a lack of interest from the Colombian side. The deal expired at the end of September, and starting in 2026, Brazilian vehicle exports to Colombia will be subject to a 16.1% tariff, according to Anfavea.

In effect since 2017, the agreement established a quota of 50,000 units exported annually with zero tariff. In August, during the 7th Latin American Automotive Industry Business Congress, organized by AutoData, Pedro Nel Quijano, president of Aconauto, the Colombian distribution industry association, had already warned of the risk of non-renewal. He noted that 30% of vehicles sold in Colombia are produced in Brazil.

Colombia is Brazil’s third-largest market for car and light commercial vehicle exports. Last year, shipments reached USD 750 million. The Brazilian government is continuing talks in an effort to reverse the situation, as the impact on exports will be significant.

In an official statement, Anfavea said that the imposition of a 16.1% tariff starting in 2026 could pose challenges for Brazil’s auto industry. The entity highlighted that Colombia already imports vehicles tax-free from other countries with which it has trade agreements, which will reduce the competitiveness of Brazilian-made cars and light trucks.

As the third-largest destination for Brazilian vehicle exports, Anfavea considers the 50,000-unit quota to be highly relevant and warns that redirecting this volume to other markets will be difficult. In 2025, Brazilian vehicle production grew 6% between January and August, driven by exports.

Source: Autodata

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