Argentina and Brazil signed this Thursday (29.04.2025/XNUMX/XNUMX) the Forty-sixth Additional Protocol to the Economic Complementation Agreement No. 14 (ACE 14), within the scope of the Latin American Integration Association (ALADI)The new provision establishes important updates for bilateral trade in vehicles and auto parts and seeks to strengthen the competitiveness of the MERCOSUR automotive sector.
According to the official report of the General Secretariat of ALADI, the protocol incorporates updated lists of products included in the agreement, in accordance with the MERCOSUR Common Nomenclature (NCM) 2022, replacing the 2017 version used until now. This technical change improves consistency with existing systems and facilitates the implementation of the new measures.
Highlights:
Reduction of external tariffs: It was agreed to reduce the external tariff on auto parts not produced in the region, provided they are intended to be used as inputs in local production processes. This measure aims to alleviate industrial costs and promote the regional integration of value chains.
Reduction of the Regional Content Index: The Regional Content Index was also reduced (ICR) of 50% a 35% for two specific tariff items:
- NCM 8702.10.00 (vehicles for the transport of ten or more people, including the driver), with a quota of 1.200 units per year.
- NCM 8704.21.90 (trucks with piston engines and maximum load less than five tons), with a quota of 800 units per year.
Rules of origin for auto parts: Regarding the rules of origin applicable to auto parts, a temporary alternative rule was established, valid until December 31, 2026: "tariff item skip or minimum ICR of 55%." As of January 1, 2027, the rules established in List 2 of Appendix I to the Protocol will apply.
Incorporation of a new Appendix III: The document includes technical instructions for correctly completing the "Rule of Origin" field on certificates of origin, an essential tool for facilitating regulatory compliance and reducing delays in customs processes.
Additionally, Argentina and Brazil have committed to developing joint strategies to improve access for their automotive products to third-party markets, thereby expanding the sector's reach beyond the region.
According to the same source, the Protocol will enter into force once both countries formally notify the General Secretariat of compliance with the required internal procedures. The date of entry into force will be published in due course in the "Agreements" section of the official ALADI website.
This formal step adds to the commitment already expressed by the signatories of the agreement: Alan Claudio Beraud, Ambassador and Permanent Representative of the Argentine Republic to ALADI and MERCOSURAntonio José Ferreira Simões, Ambassador and Permanent Representative of the Federative Republic of Brazil to ALADI and MERCOSUR; and Sergio Abreu, Secretary General of the ALADI General Secretariat.
Consequently, the signing of the instrument not only ratifies this commitment but also reflects the desire of both countries to strengthen regional economic integration, in an international context marked by uncertainty and global challenges.
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