Representatives from the Argentinian and Mexican governments signed Tuesday a four-year agreement for the automotive sector in Mexico City, the Mexican government said. The agreement would exempt light vehicle and auto part exports from both countries from paying taxes.
Under the deal, both countries will have an export quota of $575 million, which starts on March 19 and will gradually increase to $638 million during the last year of the agreement—March 2018 to March 2019.
Both countries have committed themselves to keep domestic auto production limited to 35 percent of the market. That level should increase to 40 percent in 2019.
Recently, Mexico signed a similar deal with Brazil, which set minimum shares of Brazilian and Argentine automobiles in each country. Brazil would need to have a minimum share of 44.3 percent of cars in Argentina, and Argentina an 11 percent share in the Brazilian market.