INSUBCONTINENT EXCLUSIVE:
Brazil and Argentina recently signed a new agreement to make it easier for companies in both countries to trade cars, trucks, and auto
The agreement, put into effect by Brazil in June, changes how cars and parts move between the two countries.Now, companies can import auto
parts that are not made locally without paying extra taxes, as long as they use those parts to build vehicles in Brazil or Argentina
This helps carmakers lower their costs and keep their factories running.The new rules also let companies use more parts from outside the
region to build certain vehicles, like buses and small trucks
For these vehicles, the percentage of parts that must come from Brazil or Argentina has dropped from 50% to 35%.This gives manufacturers
more flexibility and helps them stay competitive
In the first five months of 2025, Argentina built over 207,000 vehicles, which is more than 12% higher than last year.Brazil and Argentina
Deepen Automotive Ties, Reshaping South American Trade
(Photo Internet reproduction)The country also exported more cars, with almost 15% more vehicles shipped abroad in May 2025 compared to May
Vehicle production and sales both increased by about 10% in early 2025
first part of 2025.The two countries plan to keep making trade easier
By 2029, they want to remove almost all barriers for car and parts trade between them
This will help their industries compete with other countries and create more jobs.This agreement matters because the car industry supports
many jobs and is a key part of both economies
By making trade simpler and cheaper, Brazil and Argentina hope to keep their factories busy, protect jobs, and make their industries
stronger for the future.All information in this story comes from official government and industry sources
No details or numbers have been made up or exaggerated
This article presents only facts that have been confirmed by reliable data and official statements.
