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Signed Measure by Alckmin Expands Market and Encourages Investments in the Automotive Sector
Brazil and Argentina renewed, on June 17, 2025, their commitment to strengthening bilateral automotive trade. The acting president, Geraldo Alckmin, formalized Decree No. 12,515, published in the Federal Official Gazette. The decree expands the Economic Complementation Agreement (ACE) No. 14, in effect since 1990, but updated over the years. Thus, the decree incorporates the 46th Additional Protocol, signed on April 29, 2025. The negotiations were led by the Ministry of Development, Industry, Trade and Services (MDIC) and the Ministry of Foreign Affairs (MRE). This decision brings new dynamics to the commercial flow of light vehicles, vans, buses, and trucks up to 5 tons. Therefore, it creates more flexible access conditions to the markets.
Zero Tariff for Parts Expands Competitiveness
Through this decree, the Brazilian government resumes the exemption of import tariffs for auto parts not produced locally. This measure is essential, as it reduces costs for the national industry. Thus, it increases competitiveness and boosts the entire automotive chain. Furthermore, the text establishes that, mandatorily, benefiting companies must invest 2% of the imported value in research, innovation, or priority industrial programs. This requirement ensures counter-benefits that strengthen the sector in the long run. This policy aligns with the modernization strategy that Brazil has adopted since 2023. The goal is to revitalize its position in the global vehicle production ranking.
Agreement Reinforces Legal Security and Clarity
Clearly, the new protocol redefines product classification and enhances the rules of origin criteria. Thus, importers and exporters gain more legal security in commercial transactions. The new rules specify whether each item is actually manufactured in Brazil or Argentina. This update was necessary, as many changes have occurred since the ACE-14 of 1990. These changes address the demands of the automotive sector. Each new version adjusts technical details and facilitates logistical operations. Thus, it strengthens the integration between the productive chains of both countries.
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Automotive Trade Maintains Leadership Among Countries
The automotive sector is the main driver of the commercial flow between Brazil and Argentina. In 2024, the trade in automotive products reached US$ 13.7 billion. This represented about 50% of the total traded, which reached US$ 27.4 billion. By 2025, until May, bilateral exchanges reached US$ 12.6 billion. The result indicates a growth of 26.2% compared to the same period in 2024, according to data from the MDIC. This shows the importance of this relationship for the Brazilian industry, currently the 8th largest in the world in vehicle production. The sector generates over 1 million direct and indirect jobs, according to Alckmin himself.
Mover Program Boosts Investments Until 2028
In addition to reinforcing the automotive agreement, the federal government bets on strategic programs. One such case is the Green Mobility and Innovation Program (Mover), which intends to provide R$ 19.3 billion in tax incentives by 2028. These incentives are already fostering private investments totaling R$ 140 billion, according to the Ministry of Industry. This combination of policies aims to boost local production and ensure alignment with global demands. Thus, the national automotive industry maintains efficiency, innovation, and sustainability. Therefore, with the new decree and incentives, Brazil is likely to grow in the global competition. The country strengthens its ties with the Argentine market, expanding positive outcomes.
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