Mexico agrees free trade with Brazil on light vehicles

FILE PHOTO:  New Ford vehicles are seen at a parking lot of the Ford factory in Sao Bernardo do Campo
FILE PHOTO: New Ford vehicles are seen at a parking lot of the Ford factory in Sao Bernardo do Campo February 12, 2015. REUTERS/Paulo Whitaker

March 19, 2019

MEXICO CITY (Reuters) – Mexico’s government said on Tuesday it had agreed free auto trade with Brazil on light vehicles, subject to a 40 percent regional content requirement, and that it had renewed auto trade quotas with Argentina for three years, after which there would be free trade.

The Brazil agreement comes into effect from March 19, and the content requirement would be subject to current formulas for calculation, the economy ministry said in a statement. The statement did not provide details on the formula.

(Reporting by Dave Graham; Editing by Frank Jack Daniel)

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