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3 2.11 to 2.16.2019 with tax-free vehicles, there is the fear of redirecting the contributions destined to new vehicles of the companies, all global, to the commercial partner of the North American continent because it is more competitive in the eyes of the headquarters. Antonio Megale, president of Anfavea, said last week that the entity would coordinate with the government to extend the current agreement with a higher quota, to allow that more vehicles are exported to Mexico, so that the surplus could help automakers compensate the volume loss in exports to Argentina, in crisis: “A higher quota would be ideal for our industry, in order to help companies to have a bigger market to act before the decrease of shipments to the Argentine market. Opening the Brazilian market today could bring challenges to our industry in terms of competitiveness”. For the entity that represents the vehicle manufacturers, the ideal would be that Brazil negotiate with the Mexican government an annual quota, higher than the US$ 1.6 billion established by the current trade agreement. The highest possible quota, according to Megale, would be the main challenge in this issue that should mobilize industry and ministries in Brasilia the next days, since “there couldn’t be an imbalance regarding the landing of Mexican vehicles.” However, there are other challenges besides the one pointed out by the president of Anfavea. According to the executive heard by AutoData, industry and government have not yet sat down to discuss the future of exports to Mexico - the new economic team has an agenda aligned with the opening of the Brazilian national market in several sectors and, therefore, there is fear inside the industry for the possibility to exist expressive volume of imported vehicles in Brazil: “The free trade, now, would show the world all our deficiencies from the inside out.”

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