Brazilian automotive industry / ANFAVEA

Brazil, Argentina strike deal to facilitate motor vehicle trade

Jul, 01, 2022 Posted by Gabriel Malheiros

Week 202226

In June, Brazil and Argentina concluded the negotiation of a type-approval mutual recognition agreement geared toward motor vehicles, which will be signed in July by the authorities of both countries.

The deal promotes the facilitation of bilateral trade of motor vehicles between Brazil and Argentina, reducing costs and lead times. The type-approval mutual recognition favors the development of the automotive sector and increases trade flows, in addition to providing more predictability and legal security for investments.

The procedure by which the highest executive body of traffic validates the conformity of automobiles with the vehicle safety identification standards in force and approves the circulation of a particular car in the country is known as type approval. It results in the issuance of CAT in Brazil, and LCM in Argentina, supplied by the Ministry of Productive Development.

Through the new agreement, Argentina and Brazil will mutually recognize the type-approval certificates issued by the other country.

The deal will initially cover about 80% of the safety items of light passenger and light freight cars (M1 and N1 categories, respectively), with the possibility of adding other items to the list and incorporating different vehicle categories, such as buses and trucks, as well as auto parts.

The conclusion of the negotiations reinforces the interest of Brazil and Argentina in deepening the productive integration of the regional automotive industry and improving the levels of competitiveness, quality, and vehicular safety.

The agreement serves the interests of the two countries’ productive sectors, which have previously highlighted the benefits of a closer relationship between Brazil and Argentina, creating opportunities for enhancing competitiveness and optimizing costs in this vital industry.

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