After two yeras Brazil-Colombia automotive agreement now in forceStaff Writer | December 25, 2017
After two years of waiting, agreement that waives vehicle import tariffs between the two countries promises to strengthen bilateral relations.
LatAm Import tariffs for vehicles
Brazil has signed another agreement as part of its efforts to boost Brazilian industry and increase openness to foreign trade. An administrative decree by the Ministry of Industry, Foreign Trade and Services (MDIC) zeroed import tariffs for vehicle sales between Brazil and Colombia.
The agreement was signed two years ago, formalised last year, and is now officially in force. In addition to the automotive industry, the agreement also provides better access to the Colombian market for textiles and steel products.
“We understand that this will be a major boost to the Brazilian vehicle market, which has already been improving its performance and will have an excellent market in Colombia due to the geographical proximity," said Industry Minister Marcos Pereira.
The automotive sector has been one of the highlights in the Brazilian economy this year. The segment is growing again after two years of decline and is expected to hit record-high exports in 2017, per data from the National Association of Automotive Vehicle Manufacturers (Anfavea).
According to the entity, Brazilian automakers exported a total 700,900 vehicles from January to November this year (up from 475,300 last year), a record for the sector. The segment is expected to end the year with 745,000 units exported. ■