Argentina and Mexico extended the mutually granted automotive quotas for another three years, once again postponing a full opening in the automotive sector.
Thus, both countries agreed to reciprocally grant each other, for a period of three years, a zero tariff on annual import quotas in accordance with the terms indicated in the following table:
The vehicles in question are cars and trucks with a total weight with a maximum load of less than or equal to 8,845 kg (vehicles, chassis with engine and cab, and bodies for these vehicles).
Quotas will be assigned to exporting companies and managed by the exporting Party and verified by the importing Party.
Likewise, the Parties, in accordance with the provisions of a protocol, will not impose other restrictions that limit the use of said quotas.
Without prejudice to the allocation of the quota received by exporting companies for a given period, a Party may assign an additional quota with full preference equivalent to the values exported by the other Party.
On the other hand, the Parties will apply the following formula to determine the Regional Content Index (ICR):
On the latter, the value of the ICR will be 35% from March 19, 2022 and until March 18, 2025. The Parties will agree on the ICR and the formula that will be in force as of March 19, 2025 to calculate the ICR.
In 2021, Mexican car exports to Argentina totaled 126 million dollars, while Argentine car sales to Mexico were nil.
According to French credit insurer Coface, Argentina’s GDP growth should slow sharply this year, as gains related to the reopening of activity fade.
For Coface, household consumption in Argentina (67% of GDP) is likely to register a timid increase, as the labor market gradually recovers.
However, the insurer added, high inflation should rise further due to repressed price adjustments, ongoing monetary financing of the fiscal deficit and as the central bank increases the pace of currency depreciation.
Meanwhile, exports (21% of GDP) will be supported by rising prices of agricultural and mineral commodities.