MercoPress. South Atlantic News Agency

Brazil, Argentina reach deal on vehicle safety standards

The agreement to be signed in July will facilitate vehicle trade between the two countries

Brazil and Argentina have agreed to mutually recognize vehicle safety standards, for which both countries will sign an agreement in July, it was announced Thursday in Brasilia by the ministries of Economy, Infrastructure, and Foreign Affairs.

Through vehicle homologation, transit authorities will certify that vehicles produced in either country adhere to safety standards which makes them worthy of circulating in the other, it was explained.

The agreement will facilitate vehicle trade between Brazil and Argentina, reducing costs and deadlines. “The mutual recognition of vehicle approvals favors the development of the automotive sector in both countries and the increase of trade flows, in addition to providing more predictability and legal security for investments,” a statement from the Brazilian ministries read.

With the homologation, the Brazilian government will recognize the Model Configuration License issued by the Ministry of Productive Development of Argentina. The neighboring country will recognize the Certificate of Appropriateness to the Traffic Legislation, issued by the National Traffic Secretariat, of the Brazilian Ministry of Infrastructure.

Initially, the agreement will cover about 80% of the safety items for light passenger vehicles and light cargo vehicles (categories M1 and N1, respectively). There are plans to expand the items and include new vehicle categories such as buses and trucks. Both governments intend to extend the agreement to auto parts.

“The agreement meets the interests of the productive sectors of both countries, which have already highlighted in other opportunities the benefits of an even closer relationship between Brazil and Argentina, highlighting the creation of opportunities for competitiveness gains and the optimization of costs and investment, in a sector that has a significant participation in bilateral trade,” concluded the joint ministerial statement.