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Argentina and Brazil Auto Groups Urge Overhaul of ACE 14 to Shield Regional Production

The push seeks clear rules before 2029 to lock in investment during a steep import surge.

Overview

  • The auto groups ADEFA, AFAC, ANFAVEA, and ABIPEÇAS/SINDIPEÇAS unveiled a joint “Buenos Aires Declaration” at Automechanika to update and extend ACE 14, the pact that governs ArgentinaBrazil auto trade.
  • They urged Presidents Luiz Inácio Lula da Silva and Javier Milei to set new rules before ACE 14’s 2029 expiry to give five‑year investment certainty in a region with 350 million consumers and $22 billion in recent plant spending.
  • INDEC reported that imports made up 82.4% of March new‑car registrations in Argentina, while vehicle output fell more than 30% in the first two months of 2026, strengthening calls to protect local production.
  • The agenda proposes minimum local‑content thresholds, aligned technical standards, and faster customs to push import‑led entrants, especially fast‑growing Chinese brands, to build under equal terms.
  • An AFAC study for 2025 found Chinese autoparts imports up 80.9% and a $9.04 billion parts trade deficit, signaling strain on suppliers and jobs unless policy draws more manufacturing into Mercosur.