LatinNews Regional Monitor: Brazil & Southern Cone - 12 February 2020

* Paraguay and Brazil have signed an automotive agreement, as part of an economic complementary agreement (ACE-74) reached between the two countries. This establishes rules for the trading of automotive products (notably auto-parts), an industry which is not covered by the Southern Common Market (Mercosur) treaty, of which both Brazil and Paraguay are signatories. Last year, Brazil had raised the possibility of imposing 16% tariffs on its imports of Paraguayan auto-parts. The reaching of a bilateral agreement allows for the free trade of auto-parts between the two countries and preferential access to the Brazilian market for Paraguayan manufacturers, including maquilas. Paraguay’s foreign minister Antonio Rivas Palacios noted that the country has already signed a similar agreement with Argentina, hopes to reach one with Uruguay soon, and will work towards establishing an automotive agreement for the whole of Mercosur.   

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