BUENOS AIRES, March 11 (Reuters) - Argentina said it reached a new trade deal on automobiles and parts with Mexico on Wednesday aimed at ensuring “fluid bilateral trade” and capping two days of negotiations in Buenos Aires.
The government did not outline the specifics of the pact, but a source with direct knowledge of the talks said the four-year deal allows for $575 million in tariff-free trade over the first 12 months of the accord.
The deal is expected to be signed next week, said the source, who spoke anonymously.
In the second 12-month period the amount of tariff-free bilateral automobile trade will rise to $590 million, the source said. The amount will then climb to $610 million and $640 in the third and fourth years, respectively, the source said.
Trade exceeding the 12-month limits will be limited to 1-to-1 import-export transactions in order to remain tariff free, the source said.
Argentina said in a statement that details of the pact will be officially announced over the days ahead.
The country’s car business has been hurting, with February exports down 6.8 percent versus the same month last year, according to the Automobile Manufacturers Association of Argentina.
Auto production in Argentina slumped 22 percent in 2014, the group reported in January.
Reporting by Maximiliano Rizzi; Editing by Cynthia Osterman