MEXICO CITY Automotive associations in Mexico and Argentina have reached an agreement to re-establish preferential trade for light vehicles by March 19, 2015, according to Mexican automotive association Amia.
Mexicos Amia and Argentinas Association of Automotive Makers (Adefa) have asked their respective governments to start a formal dialogue based on the proposal, Amia said.
"Amia and Adefa agreed to send this accord immediately to their governments, asking them to initiate a formal dialogue," the Mexican association said.
The agreement between Amia and Adefa is based on increased export quotas between the two nations, Amia said, declining to specify quotas proposed under the new agreement.
Earlier this year, Argentina ordered the automotive-related Economic Complementation Agreement (Ace 55) to be suspended for three years, forcing Mexican companies established in Mexico to pay a 35-percent duty to export cars to the South American country. In August, the Mexican government said it would take the issue to the World Trade Organization.
A version of this article was first published by AMM sister publication Steel First.