Milei signs Ecuador trade deal, cutting tariffs on vehicles and auto parts

Argentine President Javier Milei met with leaders of the automotive industry following bilateral agreements with Ecuador, signaling a push to enhance exports and regional integration. The pact specifically targets the automotive sector, aiming to adjust export conditions for Argentine vehicles destined for Ecuador and enabling Ecuador to integrate into the auto parts market for both local production and replacement needs.

Key figures from Argentina's automotive sector, including representatives from ADEFA (Association of Automotive Factories), AFAC (Association of Automotive Component Factories), ACARA (Association of Automotive Dealerships), and executives from Toyota, Ford, and Volkswagen Argentina, participated in discussions. These meetings, held after Milei's bilateral session with Ecuadorian President Daniel Noboa, focused on improving productivity, competitiveness, and export capabilities to access new markets.

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For Argentina, this agreement represents an unbeatable opportunity to increase vehicle and auto parts exports to Ecuador, relying on the high quality of the products manufactured by our industry.

The agreement outlines specific tariff changes: Argentina will impose a 10% customs tariff on vehicles imported from Ecuador and a 0% tariff on auto parts. Reciprocally, tariffs for Argentine units entering Ecuador will range from 0% to 10%, depending on the vehicle type. This reciprocal adjustment is expected to foster a more balanced trade flow.

Industry bodies welcomed the development. ADEFA hailed the agreement as an "unbeatable opportunity" to boost exports of vehicles and auto parts, leveraging the high quality of Argentine manufacturing. Rodrigo Pérez Graziano, head of ADEFA, stated that the agreement, along with progress on the ACE-59 agenda, is part of ongoing efforts to integrate the industry internationally. He emphasized that in a context of macroeconomic stabilization, this strategic step reinforces Argentina's role as a key exporter in the region.

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The signing of the Quito Manifesto and the progress in the ACE-59 agenda are part of the work we have been doing with the Government and the value chain for the international insertion of our industry. In a scenario of macroeconomic stabilization, this strategic step allows us to continue consolidating Argentina as an exporting hub in the region.