Argentina to allow duty-free sale of 10,000 U.S. vehicles

Argentina is preparing to partially open its automotive market to U.S.-manufactured vehicles, a move that could broaden consumer choices and advance President Javier Milei’s economic liberalization agenda.

The plan would allow up to 10,000 vehicles a year to enter Argentina without paying the 35% tariff currently applied to most automobiles imported from countries outside Mercosur, the South American trade bloc that comprises Argentina, Brazil, Paraguay and Uruguay, News.Az reports, citing UPI.

The government is finalizing details of the initiative, which local media reports say could be announced in August. If implemented, it would mark one of the most significant changes to Argentina's automotive trade policy in recent years.

Industry analysts said the impact is likely to be more noticeable in vehicle prices than in sales volumes.

Gabriel Silveira, automotive editor at Argentine newspaper Clarín, told UPI the agreement would apply to a limited number of vehicles and that most qualifying models would be concentrated in higher-priced market segments.

"This agreement would involve only 10,000 vehicles annually and there are not that many cars imported from the United States. It would particularly benefit brands such as Ford and General Motors," he said.

Silveira said several luxury automakers that manufacture vehicles in the United States also would benefit, including BMW and Mercedes-Benz. He said eliminating the tariff could significantly reduce the retail price of those models.

Some companies already have begun to anticipate the agreement's potential effects. Silveira noted that Ford is offering discounts on several U.S.-built vehicles, including the F-150 pickup truck, Mustang sports car and Bronco sport utility vehicle.

"They are already being sold at discounted prices in anticipation of the agreement's final implementation," he said.

According to business news outlet iProfesional, Imports exceeding the 10,000-unit limit would continue to pay the full tariff. Import permits would be granted on a first-come, first-served basis, and no plans exist to automatically increase the quota in coming years.

The measure could benefit U.S. automakers such as Ford, Chevrolet and Stellantis, as well as European and Asian brands that manufacture vehicles in U.S. plants, including Toyota, Honda, Hyundai, BMW, Mercedes-Benz and Volkswagen.

Financial newspaper Ámbito Financiero reported that the agreement will cover passenger cars, SUVs, pickup trucks and light commercial vehicles powered by internal combustion, hybrid and electric drivetrains.

Models that could become available in Argentina under the program include the Toyota Tundra, Chevrolet Tahoe and Suburban SUVs and the Mercedes-Maybach GLS.

News.Az 

By Ulviyya Salmanli