June 7, 2016 / 5:42 PM / 2 years ago

Argentina, Brazil agree to extend auto export deal

BUENOS AIRES, June 7 (Reuters) - Argentina and Brazil have agreed to extend a bilateral deal on automobile exports for another year, the Argentine minister of production said on Tuesday.

The current deal, which expires at the end of the month, allows each country to export a certain number of vehicles to the other. Weak demand from Brazil, which is weathering a recession and is the top buyer of Argentine cars abroad, has battered vehicle exports.

“It will continue with the same terms, which is very good for Argentina,” minister Francisco Cabrera told journalists.

Argentine auto exports and production for 2016 are expected to hold steady or drop slightly, the ADEFA association of Argentine vehicle makers said this year.

Argentina produced 543,467 vehicles in 2015 and reported a 31.3 percent slide in vehicle exports.

Brazil was until recently one the world’s five biggest auto markets and remains a major base of operations for Fiat Chrysler Automobiles NV, Volkswagen AG, General Motors Co and Ford Motor Co.

Reporting by Eliana Raszewski and Nicolas Misculin; Writing by Julia Symmes Cobb; Editing by Tom Brown

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