Mercosur's Auto Repairs.

Author:Fabey, Michael
Position:Brief Article

ARGENTINA AND BRAZIL ARE RUSHING TO REACH a permanent agreement on autos and auto parts, which together represent 20% of the US$22 billion in annual internal trade within the South American Common Market, known by the Spanish-language acronym as Mercosur.

At the end of 1999, the countries failed to reach a long-term agreement, forcing a temporary two-month fix ending Feb. 29,2000 to keep the industry rolling.

Under the interim accord, Argentina and Brazil imported vehicles at tariffs of 32% and 35%, respectively, instead of the 23% common tariff called for under the Mercosur pact.

Already reeling from the impact of the Brazilian recession, Argentina's auto industry, which made one out of 12 cars...

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