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Brazil and Argentina discuss auto deal

Talks also covered Mercosur–European Union negotiations

Published in 11/07/2018 - 17:02

By Agência Brasil Brasília

A little over 20 days in his post, Argentina’s Production Minister Dante Sica has come to Brazil for a number of meetings with Brazilian government officials. On the agenda are the car deal between Argentina and Brazil, in effect until 2020, the negotiations between Mercosur (Brazil, Argentina, Paraguay, and Uruguay) with the European Union (EU), and also the Route 2030 Program, with incentives for the auto industry.

Early this week, Sica met with Brazilian Ministers Aloysio Nunes (Foreign Relations) and Marcos Jorge (Industry, Foreign Trade, and Services), in addition to Brazil’s National Economic and Social Development Bank (BNDES) head Dyogo de Oliveira, and Brazil’s Federal Revenue Secretary Jorge Rachid.

Dante Suca took office as head of the Argentine Ministry of Production in Francisco Cabrera’s place on June 16.

Bilateral talks

Under the Brazil–Argentina car agreement, in force until 2020, Brazilian car makers are expected to export $1.5 free of import taxes to the neighboring country for every dollar sold by Argentinians to Brazilians in car parts and automobiles.

The Route 2030 program, in turn, consists of incentives from the government to the Brazilian car industry for the next 15 years. The initiative secures credit of up to $390 million, whereas the industry is expected to invest a minimum of $1.3 billion in research and development.

Route 2030 also stipulates an 11% boost in cars’ energy efficiency by 2022. Vehicles sold in Brazil are to receive tags informing consumers of the exact energy efficiency and the safety devices installed.

EU deal

Also discussed was the new round of talks between the EU and Mercosur—which started Monday (9) in Brussels and is likely to last until Friday (13)—including issues also related to the auto sector, car parts, geographical indications, maritime transport, and dairies.

Next week, from July 16 through 17, in Montevideo, a new stage of talks will take place, between the Community of Latin American and Caribbean States (Celac) and the EU.

The new phase comes at a tense moment for international commerce as the US has imposed tariffs on steel and aluminum imports.

Translation: Fabrício Ferreira Edition: Davi Oliveira / Augusto Queiroz

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