earlyretirement
Moderator
Argentina Secures Brazil’s Support in Mercosur to Lower Tariffs on U.S. Products
Argentina has secured Brazil’s support within Mercosur to expand the list of products exempted from the Common External Tariff (CET), thus allowing the country to reduce tariffs on up to 50 additional tariff lines for imports from the United States. This measure increases the number of products that Argentina and Brazil can include in their respective exemption lists from 100 to 150 until 2028.
Motivation: The decision comes in response to the recent tariff increases imposed by the Donald Trump administration on Argentine products, prompting Javier Milei’s government to seek tools for negotiating better trade terms with the United States.Internal Negotiation: Although Argentina requested an unrestricted expansion, Brazil proposed—and it was ultimately agreed—to adopt a resolution with specific criteria to prevent benefits from being concentrated in certain sectors and to limit tariff reductions to products where exports to a bloc country do not exceed 20% of the total for that tariff code.Implementation:
The expansion is temporary and will remain in effect until 2028. For implementation in Brazil, for example, a resolution from the Chamber of Foreign Trade is required.Impact: This relaxation gives Argentina greater flexibility to negotiate preferential agreements with the United States, especially for sectors most affected by the new U.S. tariffs.
This measure represents a significant step forward for Argentina’s trade strategy, as it allows the country to respond more flexibly to restrictions imposed by the United States and strengthens its negotiating position within Mercosur and on the international stage.
Argentina has secured Brazil’s support within Mercosur to expand the list of products exempted from the Common External Tariff (CET), thus allowing the country to reduce tariffs on up to 50 additional tariff lines for imports from the United States. This measure increases the number of products that Argentina and Brazil can include in their respective exemption lists from 100 to 150 until 2028.
Motivation: The decision comes in response to the recent tariff increases imposed by the Donald Trump administration on Argentine products, prompting Javier Milei’s government to seek tools for negotiating better trade terms with the United States.Internal Negotiation: Although Argentina requested an unrestricted expansion, Brazil proposed—and it was ultimately agreed—to adopt a resolution with specific criteria to prevent benefits from being concentrated in certain sectors and to limit tariff reductions to products where exports to a bloc country do not exceed 20% of the total for that tariff code.Implementation:
The expansion is temporary and will remain in effect until 2028. For implementation in Brazil, for example, a resolution from the Chamber of Foreign Trade is required.Impact: This relaxation gives Argentina greater flexibility to negotiate preferential agreements with the United States, especially for sectors most affected by the new U.S. tariffs.
This measure represents a significant step forward for Argentina’s trade strategy, as it allows the country to respond more flexibly to restrictions imposed by the United States and strengthens its negotiating position within Mercosur and on the international stage.
