Argentina conditions luxury car imports to deals with Mercosur auto-parts industry

Monday, February 7th 2011 - 20:41 UTC

Full article 8 comments

Soaring imports of high priced models spurred the Argentine decision

Argentina has stopped the import of high-class luxury cars and redoubled efforts to convince companies with no assembly plants in Mercosur to reduce imports and reach export agreements with Argentine auto parts industry.

The measure which still has to be published in the official gazette is part of the Argentine government’s strategy to balance the country’s automobile trade which is 2010 registered a 40% soar in imports over 2009, reports the financial media.

Apparently the decision was coordinated between Customs and AFIP, the taxing and revenue office, which so far have remained silent.

However Ministry of Industry officials revealed that the ban reinforces the Argentine government’s request from last December which has gone unanswered.

“So far they have not presented the plans we requested and that is why now they are banned from entering high cylinder premium vehicles” said officials who added that to reach a trade balance in the short term “the 20% cut in imports informed to companies in December could be elevated further”.

The brands that could be affected include BMW, Audi, Mercedes Benz, Kia, Chrysler, Mitsubishi, Lexus, Subaru, Volvo, Jaguar, Porsche and Alfa Romeo according to the first reports.

Local representatives from those brands said that they are considering the situation, but admit the government “has the power to put pressure, since we were already having difficulties with the Customs paper work”.

Industry Minister Deborah Giorgi addressed last December a letter to importers reiterating that those companies with no plants in Mercosur “would have to reduce 20% the trade deficit of the automobile sector”, since in spite of record local production and record domestic demand, the number of units imported from Europe, Asia and the United States ballooned.

Giorgi also called on these companies to reach supply agreements with local auto-parts manufacturers for the export of ‘Made in Argentina’ supplies.

Argentine sources said that so far no company has revealed deals with local industry for auto parts exports, “it is known that they have been talks for associations of this kind”.

However the big surprise of the list was Mercedes Benz which manufactures the Sprinter van model and frameworks for urban buses and beginning next May will resume manufacturing of trucks.

Categories: Economy, Politics, Argentina, Mercosur.

Tags: AFIP, Argentina, cars, Débora Giorgi, luxury cars, Mercosur.

Top Comments

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I
great move by Cristina, I could not have come up with something as good as this, for the economy it's a check mate move, I am still thinking that she could hurry things up if the companies faced a fine or a tax on inported finished goods as well as a high tax on exported raw materials. The Argentine governmant job is to make sure that capital flows uninterrupted and that the banks never withhold cash saved by the public, in other words never let IMF or anyone collect money before the public who saved it.
Feb 07th, 2011 - 09:40 pm 0
WestisBest
Wow...'made in Argentina'....that'll be soooo tempting for BMW, Audi, Mercedes Benz, Kia, Chrysler, Mitsubishi, Lexus, Subaru, Volvo, Jaguar, Porsche and Alfa Romeo

@I(mbecile)

lets examine these statements of yours:

“I could not have come up with something as good as this, for the economy it's a check mate move”

“I am still thinking that she could hurry things up if the companies faced a fine or a tax on inported finished goods as well as a high tax on exported raw materials”

Can you not spot the incredible imbecility of these statements? Fool.
Feb 08th, 2011 - 01:00 am 0
Forgetit87
The other user was gratuitously attacked by this WestisBest for simply stating his opinions on his own country's economic policies. Let's how good Mercopress is in supressing unproductive comments with “rude or foul language” by British users.

“Can you not spot the incredible imbecility of these statements? Fool.”

I know that wasn't directed at me, but I can't spot anything wrong either. This move by Argentina is no different from China's stance toward foreign aircraft manufacturers. What Argentina is doing is neither imbecilic nor very uncommon.
Feb 08th, 2011 - 02:59 am 0

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