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Argentina and Paraguay sign bilateral trade agreement

The governments of Argentina and Paraguay reached the first agreement on a common automotive policy which will immediately be in effect and will regulate the automotive trade and will allow to deepen productive and trade integration between both countries.

The agreement which was initialled by the Industry and Trade minister of Paraguay, Liz Cramer, and the Argentine Ambassador there, Hector Lostri in Asunción, is the result of numerous meetings held by officials from both countries and it reflects the willingness and nearness favored by both administrations with the aim of continuing boosting the automotive industry for the benefit of greater regional integration.

In this regard, the president of the Association of Automotive Makers (ADEFA), Luis Fernando Peláez Gamboa,stressed that this new agreement,  "is one more example of the work that has been done in order to expand the presence and improve the access of our products in more markets".

"Furthermore, this is the first bilateral agreement signed with Paraguay, which allows us to have, from now on, a framework of sufficient predictability to continue working on the deepening of productive integration in terms of investment, employment and trade", he added.

The text establishes the foundations for free trade for some new automotive products in addition to a tariff reduction schedule for others for the next two years and reaching free trade in the third year.

Currently, the main segment that is exported to Paraguay is of pick-ups, which will consolidate their tariffs at 0%, as passenger vehicles that today have tariffs of between 10% and 15% will have it too.

Only the vehicles that integrate a higher tariff position will remain on a tariff reduction schedule, which will reduce tariffs by half in 2020 and the remaining 50% in two more years. By 2022 all the vehicles will enter the neighboring country free of duties.

It also sets the same rule of origin that was recently reached with Brazil, among other points.

Press 10/25/19

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