Brazil and Paraguay sign automotive free trade accord

Brazil and Paraguay have signed an agreement aimed at protecting exports and increasing investments in the automotive sector, according to Paraguay’s Foreign Ministry.

The treaty establishes zero tariffs for the import and export of auto parts between both countries, and was signed by Paraguay’s minister of Industry and Commerce, Liz Cramer (pictured, far left), and Brazil’s ambassador to Paraguay, Flavio Soares Damico (pictured, far right).

Also in attendance during the signing was Paraguay’s Economy Minister Marcos Prado Troyjo (pictured second from left) and Paraguay’s Foreign Minister Antonio Rivas Palacios (pictured, second from right).

With the signing of the agreement, a key step is being taken towards establishing an automotive policy for Mercosur, the southern common market, foreign minister Rivas Palacios was quoted by the ministry as saying.  

Mercosur’s Asunción Treaty, signed in 1991, did not include reference to the automotive sector, according to Martin Cuadro, the representative during the trade talks of Paraguay’s Association of Auto Parts Industries. 

‘This was something pending since the creation of Mercosur, he was quoted as saying. 

The treary will bring legal security to the auto parts sector, and which is one of Paraguay’s biggest revenue streams, and will encourage investment in the country among auto parts manucfacturers.