Released July 29, 2019 | Cordoba
en
A free trade agreement between the EU and Mercosur, the South American trade bloc, has been welcomed by the European Automobile Manufacturers' Association (ACEA).
The understanding between the two trade blocs provides that more than 90% of international trade between the four Mercosur members (Brazil, Argentina, Uruguay and Paraguay) and 28 EU countries will have import tariffs zeroed within 10 years, including 100% of industrial products, which, in theory, should benefit vehicles and auto parts manufacturers.
Tariff rates for motor vehicles are currently as much as 35% in Brazil and Argentina.
Also, through the deal, the EU auto parts industry will gain preferential access to Mercosur-located manufacturers. Mercosur countries will accept motor vehicles that have been certified to according to international UN regulations.
The EU is already Mercosur's biggest trade and investment partner and its second largest for goods trade. With this trade pact, the EU is now also the first major partner, potentially giving EU firms a head start.
Industrial Info is tracking more than 252 operational automotive sector plants with 1,886 functional management contacts in the Mercosur Bloc, with 419 active capital and maintenance projects worth nearly $12.3 billion. Click here for the list of projects.
The understanding between the two trade blocs provides that more than 90% of international trade between the four Mercosur members (Brazil, Argentina, Uruguay and Paraguay) and 28 EU countries will have import tariffs zeroed within 10 years, including 100% of industrial products, which, in theory, should benefit vehicles and auto parts manufacturers.
Tariff rates for motor vehicles are currently as much as 35% in Brazil and Argentina.
Also, through the deal, the EU auto parts industry will gain preferential access to Mercosur-located manufacturers. Mercosur countries will accept motor vehicles that have been certified to according to international UN regulations.
The EU is already Mercosur's biggest trade and investment partner and its second largest for goods trade. With this trade pact, the EU is now also the first major partner, potentially giving EU firms a head start.
Industrial Info is tracking more than 252 operational automotive sector plants with 1,886 functional management contacts in the Mercosur Bloc, with 419 active capital and maintenance projects worth nearly $12.3 billion. Click here for the list of projects.
