Argentina is considering applying measures to restrict the import of Mexican cars, which could include unilaterally denouncing the Economic Complementation Agreement (ACE) 55, which regulates bilateral trade, Argentine government sources told local media, ámbito.com.
Argentine Industry Minister Debora Giorgi said “it is essential to set new trade guidelines in order to urgently even the trade balance”.
But facing hints that Mexico is not willing to negotiate, Argentina is considering unilaterally denouncing the accord ACE55 and leave it without effect.
The measure would force Mexican president Felipe Calderón’s administration to renegotiate the guidelines of the bilateral trade which since 2008 has generated a deficit for Argentina.
According to government sources, Argentina has the strong decision of moving forward with the measure, “if Mexico refuses to renegotiate, the import of Mexicans cars of brands including Nissan, Volkswagen, Honda, Ford and General Motors would be restricted”.
Argentina’s aim is for Mexico to buy more Argentine cars and auto-parts for their car industry. In 2011 Argentina's deficit with Mexico in the automotive sector reached one billion dollars.
Economic Complementation Agreement 55, which was signed in 2002, set the guidelines for the trade of cars and auto-parts between Mexico and Mercosur bloc members Argentina, Brazil, Paraguay and Uruguay.
Mexico was among the countries that last Friday presented before the World Trade Organization a report accusing Argentina of trade-restrictive measures, lack of transparency and tying imports up in red tape.
Others WTO members supporting the statement includes Australia, Canada, Israel, Japan, Korea, New Zealand, Norway, Panama, Switzerland, Taiwan, Thailand and Turkey, as well as the European Union and The United States. However China, India, Brazil and other Mercosur member do not figure in the statement.