IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 24 Jun 2014 | Removal date: open ended
Still in force

Local sourcing

On 24 June 2014, the government of Argentina launched stimulus project for domestic car production entitled "Pro. Cre. Auto". The scope of this project is to provide consumers with subsidized financing for purchases of new, domestically manufactured cars.
 
Participants in the program receive subsidized financing for up to 90 percent of the sales price subject to a maximum loan value of ca. USD 13'300. For clients of the National Bank of Argentina, the loans are made available at the "subsidized rate" of 17 percent. For customers of other banks, the rate is set to 19 percent. The maturity of the favorable loans is set to 5 years.
 
The models of cars that are subsidized via this stimulus project belong to the following brands: Chevrolet, Citroen, Ford, Fiat, Honda, Pugeot, Renault, Toyota and Volkswagen. While these are multinational corporations, only those cars which are manufactured in their Argentinian plants are eligible for the benefit.
 
The Pro. Cre. Auto program was set to expire on 24 September 2014, but was extended to January 2015 via the Pro. Cre. Auto II framework (which is an extension of Pro. Cre. Auto. 1). After January 2015, the government did not extend the Pro. Cre. Auto.II framework. Nevertheless, on June 2016, the government reintroduced this incentive program via launching PROCREAUTO II 2016. 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

491 Motor vehicles, trailers & semi-trailers; parts
8703 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars.
870321 Of a cylinder capacity not exceeding 1,000 cc
870322 Of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc
870323 Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc
870324 Of a cylinder capacity exceeding 3,000 cc
870331 Of a cylinder capacity not exceeding 1,500 cc
870332 Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc
870333 Of a cylinder capacity exceeding 2,500 cc

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