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LatinNews Regional Monitor: Brazil & Southern Cone - 20 March 2019

In brief: Brazil

* US automobile manufacturer General Motors (GM) has announced that it will invest R$10bn (US$2.6bn) over the next five years in its Brazilian plants located in São José dos Campos and São Caetano do Sul, São Paulo state. São Paulo state governor João Doria hailed these investments, which he said will maintain 15,000 jobs and create a further 1,200 direct and indirect jobs in Brazil’s most populous state, as GM prepares to close factories around the world as part of its restructuring plans. GM will benefit from the fiscal incentive programme IncentivAuto implemented in São Paulo state earlier in March, which grants automakers up to a 25% reduction in value added taxes if they invest at least R$1bn and create at least 400 jobs in the state. The announcement of GM’s investment comes as a bilateral agreement on the free trade of light vehicles between Mexico and Brazil comes into effect. The agreement puts an end to quotas and tariffs on the sale of light vehicles between the two countries.