Since its entry into force, several protocols amending certain parts of the Agreement have been adopted. Brazil`s President Dilma Rousseff is grappling with an economic policy aimed at maintaining Brazilian GDP growth, while the country`s currency continues to instil. Brazil`s protectionist measures could in the future be to the detriment of the country`s status as a trading and investment partner. The renegotiation of ACE 55 is of concern to many potential partners. On 11 August, the Economic Secretariat (SE) published on the official website of the National Commission for the Improvement of Legislation (CONAMER) the agreement that reveals the tariff preferences for heavy vehicles corresponding to trucks, heavy goods vehicles and chassis with a motor and cab with a total weight of more than 8,845 kg, complete buses, motor chassis and superstructures with buses. or, other than that. Mexico and MERCOSUR sign Economic Complementation Agreement 54 Automobile trade with Brazil amounted to $4.68 billion, with Mexican exports of $2.77 billion and a surplus of $868 million, three times the $280 million recorded the previous year. In addition to low cost, high productivity, skilled labor and geographical proximity, Mexico has numerous free trade agreements with dozens of countries that make Mexican automotive products more price competitive around the world. The Agreement entered into force on 1 January 2003. In Brazil, the agreement entered into force on 15 January 2003.

“Once this transition period is over, free trade in cars will enter into force at the same time as the expansion and deepening of the Mexico-Argentina ACE 6,” the SE said. According to a statement from the Ministry of Economy (SE), free trade with light vehicles with Brazil will be open from today, after the two countries agreed to increase the regional content index (RCI) for cars to 40%, with the current formula being used for its calculation. Mexico agreed to limit the value of its automotive exports to Brazil to $US 1.45 billion (2012), US$1.56 billion (2013) and $US 1.64 billion in 2014. Adaptations to the original agreement also include conditions to increase the quantity of auto parts in the Mexican auto industry from Latin America. The Mexican government has said the export allocations will remain in effect for a period of three years, after which they will be removed. In 2015, the two countries began a negotiation process for the expansion of ACE 55. The agreement will give companies additional time for heavy-duty vehicle supply chains, to adapt to future competitive standards while maintaining their operations in truly “adverse” pandemic conditions. In 2011 in particular, Mexican auto exports to Brazil increased by 70 percent. As a result, Brazil has threatened to abandon the ACE 55 agreement if Mexico does not agree to stick to forced cuts in car sales to the country.

These cuts, introduced in March 2012, artificially used Mexican auto imports, contrary to the long-standing pact for vehicle trade between Mexico and Mercosur. Compared to car sales in 2011, the restrictions that have been introduced are more important. This measure could pose problems for Mexico and generally reflects negatively the spirit of free trade between the MERCOSUR countries and itself. Economic Partnership Agreement No. is an agreement specific to the automotive industry…