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Signed declaration at Automechanika in Buenos Aires foresees productive integration, investment attraction, technical standardization, and joint actions to increase competitiveness in the automotive sector
Last week, representatives from automakers and auto parts manufacturers from Brazil and Argentina signed an agreement to strengthen the automotive sector in the region amid the advance of Chinese vehicles in both markets. The document, called the Buenos Aires Declaration, was signed during Automechanika, held in the Argentine capital.
On the Brazilian side, the signing was done by Anfavea and Sindipeças, and on the Argentine side by Adefa and Afac. The proposal is that the new rules of the agreement be defined before 2029, with an integrated agenda aimed at increasing competitiveness, attracting investments, and reinforcing productive integration of the automotive sector between the two countries.
Why the automotive sector entered reaction mode
The agreement arises in a context where Brazil and Argentina are seeing an increase in the entry of Chinese vehicles, thereby increasing competitive pressure on automakers and auto parts in the region.
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According to the entities, the Buenos Aires Declaration is a response to the increase in global competition and the technological transformations that are already reshaping the automotive sector.
In addition to reacting to prices and scale of Asian brands, the intention is to prepare the ground for a more integrated production environment with greater export capacity, reducing structural weaknesses that leave the regional automotive sector more exposed.
The economic weight of the automotive sector in Brazil and Argentina
Data released at the event indicates that the automotive sector accounts for about 20% of Brazil’s industrial GDP and 8.4% of Argentina’s. Together, the two countries employ more than 1.9 million people directly and indirectly in chains related to automakers, auto parts manufacturers, logistics, trade, and associated services.
This weight helps explain why the issue has gained urgency, as changes in the dynamics of importation, production, and technology have a direct impact on employment, investments, and revenue.
What Does the Buenos Aires Declaration Foresee
The document establishes the beginning of a joint effort aimed at productive specialization and industrial complementarity between Brazil and Argentina. The logic is to strengthen regional value chains, expand trade exchange, and create more balanced and sustainable investment processes.
The declaration also reinforces the need for Mercosur to evolve from a model centered on trade administration to a strategy focused on production and export, with an emphasis on increasing the competitiveness of the automotive sector in the global scenario.
Productive Integration, Technology, and More Complex Auto Parts
Among the points mentioned is the coordination of policies to encourage the development of regional automotive technologies. This includes a focus on more complex auto parts systems and the advancement of solutions related to hybrid and electric engines, areas that are gaining relevance in the technological competition of the automotive sector.
The proposal also mentions advancements in the standardization of automotive technical regulations, including rules applicable to the replacement market, a sensitive segment for competitiveness, costs, and post-sale quality.
Borders, Customs, and Logistical Costs in Bilateral Trade
Another focus of the agreement is to make customs processes at the borders more fluid, aiming to reduce costs and increase logistical efficiency in trade between Brazil and Argentina. In integrated chains, delays and bureaucracies become direct costs, affecting production, supply, and delivery schedules.
The expectation is that, with clearer rules and more agile processes, the automotive sector will be able to operate with greater predictability and less waste of time and resources.
The Pressure of Chinese Cars and Recent Tensions
The declaration comes at a time when the Brazilian and Argentine markets are feeling the aggressive advance of Chinese brands.
This issue has been at the center of the debate in the automotive sector and even generated tensions in Brazil in 2025, when automakers pressured the federal government against granting import tax exemptions for semi-finished cars.
With the new pact, the attempt is to transform the reaction into a strategy, building a regional plan that combines productive integration, technology, and investment environment before 2029.
Do you think this pact will truly strengthen the automotive sector of Mercosur or will Chinese competition continue to dominate due to scale and price?
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