MIL OSI-C. Region: Latin/Latin America
Source: Republic of Brazil
It was signed on Tuesday (11/2), under the Assumption of the Agreement of Economic Complementation No. 74 (ACE-74), Brazil, and Paraguay.
The ACE-in 74 is an important milestone for the deepening of the integration between Brazil and Paraguay, and on the issues of the agenda of the economic and trade, such as trade facilitation and customs cooperation, in addition to understanding the existing framework of the STATE. At the conclusion of the ACE tourist destinations will complete the network of bilateral agreements of this kind already exist between Brazil and the countries of the MERCOSUR, within the framework of the Latin American Association of Integration (ALADI): ACE-2-Uruguay, and ACE-14 in the country.
On the same occasion, an agreement was signed as the First Additional Protocol to the ACE-auto Agreement between Brazil and trinidad and tobago. The auto Agreement is signed between the two countries will bring greater stability, security, and legal certainty for investments and cross-border trade in the products of the industry. The signature on the instrument, it is an important milestone in the bilateral relationship, and will help to promote the fitness of the automotive industry in the Customs Union in the MERCOSUR.
The Agreement will be valid for an indefinite period of time, or until the fitness of the automotive sector to the general regime of the STATE. For the product, Brazil will grant free-trade immediate products for the automotive, paraguay. In Paraguay, for its part, shall grant free-trade immediate products for the automotive, brazilians charged with a tariff of between 0% and 2%, and then apply the margins of preference in the tariff increasing for the other products of automotive, even with the full liberalization of the sector by the end of 2022.
In the area of rule of origin, the Agreement sets out the Specific Requirements of Origin for each product in the automotive industry, in line with the terms negotiated recently in the bilateral agreement with Argentina, and the agreement between MERCOSUR and the European Union. The Agreement will also provide for the conditions of access are preferred, with Contents of the Content Region (ICR) will be reduced to one car share and the other share of vehicles with powertrain options.
In the case of the car parts in order to accomplish produced under the rules of the assembly, it was decided that it will be given free access to the brazilian market until December 31, 2023, provided that they comply with the rules of origin in Accordance with the ICR, a minimum of 50%. Starting in 2024, with the access of the spare parts are produced under the rules of the assembly in Brazil will take place with the quotas laid down in the Agreement. Have been set, as yet, with different conditions of access for the auto, with ICR, low, – including those produced under the assembly, for a period of seven years, in the case of Paraguay, and for four years, and, in the case of Brazil.
As for the collection of consular fees, a topic of great importance to the productive sector, brazil, Paraguay, is committed to to hold the the products for automotive as originating from the country after the eight years of the entry into force of the Agreement.
The Agreement provides that each party shall continue to apply in their domestic rates are currently in effect on imports of automotive products from third-party business partners, until he wakes up, in the framework of MERCOSUR, the implementation of the Common External Tariff (CET) to products of the industry.
With regard to the import of new and used vehicles, Paraguay has committed itself to revise its national policy on the import of such products under the terms of which shall be agreed upon within the framework of the automotive regime for the MERCOSUR, taking into account the norms of the environment, public health and safety.
After the signing of the ACE, and the Automotive industry, the instrument will be shipped to the warehouse next to the DEVELOPMENT. Then, it will be the beginning of the process of the internationalisation of both of these instruments in the brazilian legal system.
Trade in automotive products between Brazil and Paraguay has grown substantially over the last decade, in particular as a function of the value of brazil’s exports of cars and imports of brazilian auto parts (especially the wiring). By 2019, the trade flow amounted to US$ 650 million, with an export value of US$ 415 million and imports of US$ 235 million, resulting in a trade surplus of US$ 180 million to Brazil as well.
EDITOR’S NOTE: This article is a translation. Apologies should of the grammar and/or sentence structure not to be perfect.