Brazil recently published two trade agreements with Mexico, and, earlier in July, with Paraguay. The Mexican agreements cover Commercial Vehicles trade, with the reduction of import taxes progressively reaching zero by 2022. The agreement with Paraguay covers auto parts taxes from country to country. The taxes are now between 0 and 2% and will be zero in 2022.
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PSR Analysis: The agreement with Paraguay is beneficial to auto parts makers on both sides of the border and helps to fight Asian competitors. With Mexico, the installed Truck Industry in Brazil is likely to expand exports to Mexico in coming years. PSR
Fabio Ferraresi is Director Business Development South America for Power Systems Research
