Ace 55 Free Trade Agreement
Written by trasfoco in Sin categoría on abril 07, 2021
An agreement specifically for the automotive industry is the complementary economic agreement No. 55, known as ACE 55. ACE 55 was negotiated in 2002 between Mexico and MERCOSUR (Argentina, Brazil, Paraguay and Uruguay) to reduce tariffs on vehicles and auto parts to support trade in these products between the five countries. ACE 55 is part of a broader framework agreement between Mexico and the Mercosur countries to improve trade and economic relations between all parties involved. From Mexico`s perspective, the auto industry agreement is a step towards improving trade relations with its major Latin American partners. Argentina: Note C.R. 172/02 of 17 December 2002 – Decree 415/92 (CR/di 1528). Brazil: Note No. 201 of 08 November 2002 – Decree 4.458 of 06 November 2002 (CR/di 1514). México: Note 286/02 of 19 December 2002 (CR/di1550) and note 1/03 of 3 January 2003, which accompanies the agreement published in the Official Journal of 31 December 2002 (CR/di 1542). Uruguay: Note 893/02 of 17 December 2002 – Decree 663/05 of 27 November 1985 (CR/di 1533). On August 11, 27, the Economic Secretariat (SE) has published on the official website of the National Commission for the Improvement of Legislation (CONAMER) the agreement to revoke tariff preferences for heavy vehicles, heavy trucks, tractor trucks and chassis stations with engine and cab with a total weight of more than 8,845 kg, as well as full buses, motor chassis and carwork stations with buses. One of the main objectives of ECA55 was to lay the foundations for free trade in the automotive sector.
It also promotes the development and integration of trade relations and preserves and expands existing trade flows between Mexico and MERCOSUR. The Council of Human Rights Ministers (HRC) also supports trade regulation in terms of market access, tariff preferences and technical regulations. – Mexico`s automotive trade surplus is growing by 17% in 2018, official figures show that a plan for the transition to free trade is added as an annex to this agreement, applicable to imports from the Federal Republic of Brazil of heavy vehicles, which will last three years (2020-2023), with increasing preferences. The SE pointed out that car trade with Argentina amounted to $817 million last year, with Mexican exports amounting to $630 million, leaving a surplus of $443 million. Since January 2003 – when ACE 55 came into force – trade between Mexico and MERCOSUR has more than doubled. Auto trade between these Latin Americans has flourished, and the agreement has been good for Brazil, as it has accumulated trade surpluses on cars with Mexico. The tide has started to turn, as the currency is stable in Brazil, and the relatively high cost of domestic manufacturing has helped to make Mexican cars cheaper than their local counterparts. Mexico then agreed to cap the number of cars it exports to Brazil. After intense negotiations in support of the automotive industry in Mexico, Economy Minister Ildefonso Guajardo Villarreal recently signed an agreement in Rio de Janeiro with the Brazilian government to amend the Economic Supplement Agreement 55 (ACE 55, by its initials in Spanish). Brazil is Latin America`s largest trading partner and accounts for 23% of Mexico`s trade.
In these bilateral relations, the exchange of vehicles and parts is essential, with automobile trade accounting for almost half (46%) I did it. bilateral trade flows (2014). In addition to low costs, high productivity, skilled labour and geographic proximity, Mexico has numerous free trade agreements with dozens of countries that make Mexican automotive products more globally competitive. In the case of Argentina, as decided in 2011 and 2015, trade will be maintained over the next three years, so that from today the rate will be increased by 10% per year in the first year, 5% in the second year and 5% in the third year.