Weekly Report - 14 September 2004

ARGENTINA | Auto trade liberalisation postponed. President Néstor Kirchner announced last week that the liberalisation of Argentina's trade in motor vehicles with Brazil, currently under a managed régime, will not take place in 2006 as foreseen in a bilateral agreement signed two years ago. He said that Argentina's auto industry needed to be strengthened before liberalistion could occur; 'we are not here to see negative asymmetries deepening.' Economy minister Roberto Lavagna travelled to Brazil to explain the decision and to ask for new investment rules within Mercosur to help balance capital flows and enable the reactivation of Argentina's industry. Luiz Fernando Furlan, Brazil's development, industry and commerce minister, said the Argentine decision had come as a surprise, but admitted that there were asymmetries that needed correcting.

End of preview - This article contains approximately 352 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial