Mexico withdraws Argentina tariff accord

By Adriana Barrera ,Reuters

MEXICO CITY — Mexico has withdrawn a zero-tariff agreement with Argentina on autos in a tit-for-tat trade dispute after the Argentine government’s decision to pull out of an auto trade pact between the two countries. Francisco de Rosenzweig, Mexican undersecretary for trade, said on Thursday the measure became effective on June 26. Mexico had said on June 25 that Argentina had pulled out of the auto trade pact over the deal’s conditions. “Mexico is taking a reciprocal action,” de Rosenzweig said. Argentina imports to Mexico will now be subject to a 20 percent tariff on light vehicles and between zero and 20 percent for auto parts and machinery, de Rosenzweig said. “Mexico will do everything in its power to make sure the agreements it signs with other countries are respected,” said Mexico’s Economy Secretary Bruno Ferrari.

“We understand (the Argentine action) as an act of protectionism. We are very concerned by it.” When Argentina withdrew from the pact, Mexican cars were subject to a tariff of 35 percent on vehicles and a range of tariffs on parts and machinery in Argentina.