The Brazilian government signed an Automotive Agreement between Brazil and Paraguay this Tuesday (11), in Asunción.
According to the Ministry of Economy and the Ministry of Foreign Affairs, the agreement has an indefinite term of validity, or until the automotive sector adapts to the general Mercosur regime.
According to the ministries, trade in automotive products between Brazil and Paraguay has been growing, "mainly due to Brazilian exports of automobiles and Brazilian imports of auto parts (primarily electrical harnesses)." "In 2019, the trade flow totaled US$650 million, with exports valued at US$415 million and imports valued at US$235 million, resulting in a surplus of US$180 million for Brazil."“
Under the agreement, Brazil will grant immediate free trade to all automotive products coming from the neighboring country. Paraguay, in turn, will grant immediate free trade to Brazilian automotive products taxed with tariffs between zero and 2%. Furthermore, it will apply increasing preferential tariff margins to other automotive products until the sector is fully liberalized by the end of 2022.
Source: Infomoney
News commented on by Anna Gabriela, Lawyer, graduated in Law in 2012 from the Professor Damásio de Jesus Law School. Area of Expertise: Customs Law and Tax Law, OAB (Brazilian Bar Association): 348.552.
