Argentina and Brazil, confirming and extending automotive agreement

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Was signed by the Ministers of Economy, Industry, foreign ministers and ambassadors from both countries. Was extended by one year the validity of the 38 Additional Protocol and pledged to develop in these months an agreement that extends from 2015 to 2020

Ministers of Economy, Axel Kicillof, and Industry, Debora Giorgi, agreed with the head of the ministry of Industry in Brazil, Mauro Borges, extend for one year, until June 30, 2015, trade with a flex of $1,5 dollars, the term of the thirty-eighth Additional Protocol to the Economic Complementation Agreement No. 14. the meeting was also attended by Foreign Minister Hector Timerman.

They also committed to initiate negotiations to be carried out between July 2014 and March 2015 to develop a new agreement, to be implemented from July 1st 2015 to trade in automotive products.

"The goal is to balance trade. This agreement will lead to predictability," remarked Economy Minister Axel Kicillof.

It includes, among other proposals, modification of the rule of origin, aimed at increasing regional content and auto parts; building a common industrial policy for auto parts, under the Agreement, to consider revising the tariff structure and the various mechanisms that pierce tariffs.

It also provides the relationship between terminals and parts makers in order to design the foundations for a sustainable and balanced relationship between terminals, and auto parts and systemists definition of national policies to support the automotive sector, among other issues of relevance.

The Automotive Committee will also work in trade negotiations with third countries and / or groups of countries and the guidelines for the Mercosur automotive regime.

At the same time, the private sectors of both countries related to the automotive industry undertake to develop joint projects with the cooperation of the governments, in order to achieve both Argentina and Brazil, the following goals:

1. Maintain minimum mutual participation in the respective markets for vehicles, which is 11% of Argentine vehicles in the Brazilian market and 44.3% of Brazilian units in the Argentine market. In both cases, the market will be calculated on the basis of the patent which is also used as a basis for the monthly monitoring.

2. Seek increased competitive supply of auto parts in the region for greater participation and mutual relative, such regional auto parts, automotive production in the two countries. For this, a maximum of 120 days, imported auto parts (especially those not produced in the region) and the potential of competitive production in the region will be identified. Productive investments in this regard will be promoted and negotiations between companies from both countries will be conducted to explore the potential of the auto parts industry.

"The agreement between the governments of Argentina and Brazil has to do with the expansion of the Additional Protocol to the Economic Complementation Agreement N ° 14" said Kicillof, and encouraged the protocol signed with goals 2015/2020 "comes to crown a long intense negotiation and mutual agreement of the automotive industry. "

Added that he will print "certainty" and contribute to achieving a "better balance bilateral trade, giving a lever to allow the sector to continue growing," Economy Minister completed.

For his part, Foreign Minister Hector Timerman said that these "agreements are another chapter in this dialogue we have Argentina and Brazil, in the defense of interests."

He also thanked and highlighted the position of Brazil to the claim of vulture funds in U.S. courts. "A few weeks ago Brazil was filed in the United States in support of Argentina against vulture funds".

Regarding the agreements noted that shows "two states working to create more and better jobs."

Meanwhile the Minister of Industry Debora Giorgi said that "we had a importate challenge. We were facing the end of normative legal Institute bilateral automotive trade, the protocol finished effect on 1 July this year."

Make that the second challenge was associated "to a sharp slowdown in the markets in Argentina and Brazil. The remesones relate to articulate a flow of trade with the major importer: Brazil."

"It will cover our mouth to many who said that Mercosur does not work. Evidence of what we could do shows that Mercosur is alive, standing, and goes forward," he said.

traslation: Belén Zapata