Argentina’s government lowers tariffs on the automotive industry to boost exports

Argentina’s Ministry of Economy has announced a series of measures to boost growth and strengthen the competitiveness of the automotive sector, one of the pillars of the national economy. This sector employs over 75 thousand people and represents 10% of the country’s industrial production.

Among the measures adopted, it has been decided to maintain the export duty exemption for additional exports, a policy implemented in 2021. This means that automotive companies will not have to pay export duties for the increase in their exports compared to those made in 2020.

The Argentine automotive industry will benefit from an agreement with Brazil, where tariffs on molds used in production will be significantly reduced. Metal molds will go from 35% to 12.6%, while plastic injection molds will drop from 24% to 12.6%. In addition, vehicle model approval processes will be simplified and streamlined, facilitating exports.

Another measure is the systematization and digitalization of the Repostock (Repostock) regime, a modality that allows the import of goods destined to replace those that, previously imported and subjected to industrial processes, have been exported. This measure facilitates the sale of automobile parts free of duties and taxes by suppliers to the terminals, thus increasing the export sector’s competitiveness. This reduces the cost of domestic parts destined for export.

In the area of safety, the agreement provides for the recognition of fewer requirements for internal combustion and electric vehicles, which will accelerate the launching of new models and increase exports. This collaboration between Argentina and Brazil represents an excellent opportunity for both automotive industries and will benefit both countries.

The Argentine automotive industry is a crucial sector in the national economy, with an outstanding production capacity and an annual export value of nearly US$8.9 billion. It also generates 6% of registered industrial employment, with approximately 76,000 workers. It is the second most crucial export complex after soybeans and is vital to the country’s economic development.

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