Under the old arrangement, Brazil had initially granted duty-free access to $1.450 million worth of Mexican light-duty vehicles during the year beginning March 19, 2012. That amount was subsequently increased to 1.560 million during the year beginning March 19, 2013, and 1.640 million during the year beginning March 19, 2014. Brazil had agreed to provide unrestricted duty-free treatment to Mexican light-duty vehicles by March 19, 2015, but that deadline has been extended for four years.
The Ministry of Economy adds that Mexico and Brazil have agreed to preserve the origin rule that requires originating materials incorporated into any light motor vehicle exported under these TRQs to account for at least 35% of the value of the good, a share that will be increased to 40% in 2019. In addition, the parties have agreed to adopt a more flexible origin rule for automotive parts and postpone until Dec. 31, 2018, the deadline to reach an agreement on bilateral trade in heavy-duty motor vehicles.
For more information contact Jorge Morales in STTAS’ Mexico City office at +52 (55) 52 63 84 40 or USA & Canada Toll Free: (866) 455-0548 or Flavio Siqueira in STTAS’ São Paulo office at +55.11 3045-3080
