The new Common Automotive Policy (CAP) with Brazil was formalized this Monday (01.06.2020/XNUMX/XNUMX) by the national Government, and will govern until the 30 of June of 2029, with preferential quotas for bilateral trade in automobiles and auto parts.
It was from the publication in the Official Gazette of the Forty-Fourth Additional Protocol to the Economic Complementation Agreement Number 14 between Argentina and Brazil, signed on December 2 of last year by the administration of Mauricio Macri.
La new cap established that the flow of bilateral trade will be monitored until June 30, 2029, quarterly, globally, by country, for all automotive products.
In addition, it determined that as long as they incorporate a minimum regional content of Mercosur of 50%.
The agreement will allow for new integration deadlines until 2029, and is the most extensive agreement reached between the two countries to date.
Among its fundamental scope, the new CAP established that as of July 1, for every dollar exported in vehicles and parts to Brazil, US$ 1,8 will have to be imported, whereas before the agreement this differential was US$ 1,5.
The deviation coefficient on exports in bilateral trade, known as "flex", will increase to US$ 1 on July 2023, 1,9; US$ 2025 on the same date in 2; US$ 2027 in 2,5; US$ 2028 in 3; and will be freed as of July 1, 2029.
This new agreement also created the figure of the Regional Content Index (RCI), which will be a specific requirement for progressive integration programs starting January 1, 2027.
In addition, countries will grant, reciprocally, a 100% preference margin for imports of 10.000 automobile units per year when they meet a minimum ICR of 35%.
Source: Telam
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