Mexico withdrawn a zero-tariff agreement with Argentina on autos

Article by Christian A., on July 8, 2012

Mexico responds to the Argentine government's move to pull out of an auto trade deal by withdrawing a zero-tariff deal on automobiles with Argentina. This decision took effect on June 26, according to Francisco de Rosenzweig, Mexican undersecretary for trade. On June 25, Mexico said that Argentina backed out of the auto trade contract over the deal's conditions.

De Rosenzweig said that Mexico is doing this as “a reciprocal action.” He added that Argentina’s imports to Mexico would now be subjected to a 20% tariff on light vehicles and 0-20% for auto parts and machinery. Mexico's Economy Secretary Bruno Ferrari said that the nation will do what it can to guarantee that the agreements it enters with other countries are recognized.

He said that the Argentine action is done to protect itself and that they’re highly worried about the matter. Upon Argentina’s withdrawal from the agreement, Mexican cars became subject to a 35% tariff on vehicles and a variety of tariffs on parts and machinery in Argentina. Mexico had said in the past that it was setting up a case against Argentina before the World Trade Organization due to protectionist measures.

Last March, Argentina said that it intended to acquire more favorable provisions in the pact, dubbed ACE-55, seeking to emulate Brazil, which received concessions that limited the number of Mexican auto exports to that country. The Mexican government had said in the past that it won’t renegotiate the 2002 auto deal with Argentina. Argentina's center-left government has become more stringent on imports and foreign-exchange purchases in the past few months to boost its balance of trade, which is vital to increasing international reserves meant to pay debt.

Topics: mexico

If you liked the article, share on:

Comments

Recommended

The primary suggestion of a 4x4 ute from French company Peugeot was first revealed in 2016. Fifteen months later, the production version is launched. Now, Peugeot is not shying away...
by - June 24, 2017
The new Jaguar E-Pace crossover will soon hold its official launch on July 13 and is expected to arrive at the showrooms by early next year. It couldn’t have come...
by - June 24, 2017
As prices of the original Shelby Cobra have skyrocketed into astronomical proportions, there are firms like Superformance that serve replicas to consumers who demand the same levels of performance at...
by - June 24, 2017
New and improved 2018 Subaru Legacy comes packed with a number of upgraded features from the get go - from the exterior to the interior. And the company has finally...
by - June 23, 2017
In an interview involving Lamborghini CEO Stefano Domenicali and Automotive News, the topic about the Urus was thoroughly discussed. This super SUV is scheduled to make its debut later this...
by - June 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries