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LatinNews Daily - 17 December 2020

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In brief: Argentina and Chile agree new deal for automotive sector

* Argentina’s foreign ministry has announced a new deal with its Chilean counterpart regarding the automotive sector, which will modify rules of origin applicable to bilateral trade for the sector to be implemented as of March 2021. According to a statement by Argentina’s foreign ministry, the new agreement is expected to result in Argentine automotive exports to Chile increasing by 10,000 units annually. The agreed rules of origin will establish a Regional Value Content (RVC) of 50% of national content, which aims to promote a “substantial increase” in bilateral trade and investment flows. The same statement notes that since 1996, the Southern Common Market (Mercosur), which comprises Argentina, Brazil, Paraguay, and Uruguay, has had a trade deal with Chile which by 2014 involved the free trade of goods. It notes that in 2019 Argentina and Chile expanded on this to include new sectors such as public procurement and services.