Brazil and Mexico keep auto export quotas unchanged
BRASILIA, March 9 (Reuters) - Brazil and Mexico will maintain an export quota for vehicles nearly unchanged, a Brazilian government source said on Monday, in a victory for the South American nation that wanted to avoid free trade to shield its industry.
Both countries set the quota of exports of light vehicles between them at $1.56 billion for the first year, increasing annually until the treaty expires in 2019. Exports above that limit will pay import tax of 35 percent.
Authorities from both countries are expected to sign the agreement later on Monday.
The original treaty signed in 2012 had an annual limit of about $1.5 billion and called for the free trade of vehicles after its expiration on March 19.
Struggling with dwindling car sales, Brazil had urged Mexico to extend the agreement to ease the pain for an industry that has started to fire workers. Mexico, meanwhile, had wanted free trade to bolster its own flourishing car sector. (Reporting by Alonso Soto; Editing by Chizu Nomiyama)
© Thomson Reuters 2017 All rights reserved.