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LatinNews Regional Monitor: Brazil & Southern Cone - 3 July 2019

In brief: Paraguay

* Paraguay’s foreign affairs ministry (MRE) is undertaking negotiations with its Brazilian counterpart regarding Brazil’s threat to impose tariffs on Paraguayan exports of vehicle parts. When the Treaty of Asunción was signed in 1991, establishing the Southern Common Market (Mercosur), the automotive industry was not included in the agreement. While a bilateral agreement regarding this sector has been on the bilateral agenda for years, the MRE complains that no progress has been achieved. Paraguay exports around US$300m worth of vehicle parts annually to Brazil.