ANNOUNCEMENT 11 Dec 2010In December 2010, the government of Argentina announced an alteration to its export prohibitions.
NUMBER OF INTERVENTIONS
On December 11 2010, the Government of Argentina requested finished-vehicles importers to present a plan to reduce the current trade deficit in the sector to 20%. The Government asserted that the main goal is to protect the external sector given that each year importing companies are purchasing vehicles in countries outside of the Mercosur generating a deficit of USD 1000 m. An import decrease would limit the pressure local production has to face against vehicles from developed countries. Moreover, the initiative would guarantee the market quota of the local terminals and protect local jobs.
Since Argentinean importing companies do not hold assembling plants in the country, they could comply with the measure by: diminishing their import activities, by associating with domestic auto parts producers so their plants located in Brazil are able to buy domestic parts or by boosting auto parts sales in the Brazilian market.
Imports plans shall be submitted by early January.