Today, November 15th, automakers in Mexico announced they had reached an agreement with Argentinean counterparts to resume free trade in vehicles.
AMIA, the Mexican auto industry association, said it has reached the preliminary agreement with ADEFA, Argentina’s auto manufacturers association, both urging their governments to settle the remaining differences.
“AMIA and ADEFA have agreed to immediately send to our respective governments the agreement we’ve reached asking that they initiate a formal dialogue within the framework of (ACE-55) based on this proposal,” the statement said.
Back in June, Argentina announced a three-year suspension of the ACE-55 auto trade agreement, which allows the free vehicle exchange between the two countries. But Buenos Aires imposed a tariff of 35% on Mexican vehicles, which made Mexico end import duty preferences on vehicles shipped from Argentina, fueling the trade dispute between the two markets.
The ACE-55 agreement was signed in 2003 and it regulates vehicle trade between Mexico and the Mercosur block of countries, including Uruguay, Paraguay, Argentina and Brazil, allowing a flexible auto trade through bilateral agreements. In March Argentina said it plans to seek more favorable terms in the agreement, such as following Brazil which limited the number of auto imports from Mexico into the country.