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Mexico Publishes Regulations on Updated Auto Trade Agreements with Brazil and Argentina

Monday, March 23, 2015
Sandler, Travis & Rosenberg Trade Report

The Mexican government has published new regulations implementing the extended ACE 55 agreements recently signed with Argentina and Brazil concerning trade in light-duty motor vehicles and auto parts. These agreements provide for duty-free trade in these items up to specified amounts, which will increase each year for four years.

Sandler & Travis Trade Advisory Services’ Mexico City office reports that under the updated agreements, which took effect March 19, auto parts (including spare parts) are now generally required to meet the 35 percent regional value content requirement, which will increase to 40 percent in 2019. However, some auto parts are only subject to a regional value content requirement of 18, 19 or 20 percent, while others (including steering wheels, seat belts and shock absorbers) are subject to a 20 or 30 percent regional value content requirement until 2017.

Previously, auto parts could meet either the tariff shift requirement or the regional value content requirement,  which was 50 percent. Under the updated agreements, auto parts will continue to have this flexibility when they are integrated into a light-duty vehicle. Spare parts, however, will have to meet the 35 percent regional value content requirement.

The value of light-duty vehicles and auto parts that may be shipped between Mexico and Brazil and Mexico and Argentina under the updated agreements is as follows.

Year beginning March 19




$575 million

$1.56 billion


$592.25 million

$1.606 billion


$612.98 million

$1.655 billion


$637.5 million

$1.705 billion

For more information contact Mirsha Saynes in STTAS' Mexico City office at +52 (55) 52 63 84 40, Flavio Siqueira in STTAS' São Paulo office at +55.11 3045-3080, or Leandro Gonzalez in STTAS' Buenos Aires office at +54 (11) 5984-3955.

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