Argentina and Brazil will have free trade in cars in 2020
Argentina and Brazil renewed last Friday the current automotive exchange agreement. The rules remain the same: without tariffs, but with limits to the exchange of vehicles.
This boundary is marked by a 1,5 flex, it means that Argentina can import 1.5 dollars in brazilian autos by each dollar of argentine autos that exports to Brazil.
Brazilian envoys tried to carry that flex to two, to offset the fall in their market internal, but failed to convince the Argentine negotiators. The big news of these negotiations is that the opening of the automotive trade between the two countries is set to 2020. There won’t be any kind of flex that regulate the flow of vehicles: earn the country that is most competitive. Even the day was set to lift completely barriers: will be Tuesday, June 30, 2020.