Brazil Signs Agreement Expected to Triple Car Exports to Colombia
Brazil and Colombia have signed an Agreement that establishes zero-export rates allocated in quotas for automobiles, vans, and lightweight commercial vehicles. Prior to this agreement, exports were subjected to a 16% import tax. The signing of the Agreement is expected to triple vehicle exports to the Columbian market within three years: sales, which totaled 17,500 units in 2016, are expected to reach up to 50,000 units.
The quotas established are to include 12 thousand for the first year, 25 thousand for the second year, and 50 thousand per year from the third until the eighth year. After the eighth year, quotas will be subjected to a revision. The Agreement also determines that Colombia can export the same amounts of automobiles to Brazil without collecting taxes.
According to the Brazilian Minister of Industry, Foreign Trade and Services, Mr. Marcos Pereira, Brazil-Colombia Automotive Agreement is an important step towards regional integration. Namely, by entering into this Agreement, Brazil grants Colombia the same treatment as to the one applied to Argentina and Mexico.