The assessment is that, while in Brazil automakers will have more time to prepare for competition with Europe, the agreement will facilitate access for Europeans to Brazilian parts suppliers.
This was the reading made by the president of Anfavea, Márcio de Lima Leite, during the presentation to the press of the sector’s latest results report. “We are talking about an agreement that was announced but not signed. We have to understand the details, but it signals a win-win”, he commented.
According to the agreement, the trade in cars completely free of import tariffs will only happen after 30 years of the treaty coming into force, with the exception of electrified cars, for which the removal of tariffs will be faster, in 18 years.
In the first six years, the industry will continue with the current protection: 35% of the import tax.
According to Leite, European Union headquarters often stop buying from Brazilian suppliers today because there is an import tax. In turn, he added, Brazil will have a longer adaptation period in the trade opening process. “This will help us for the next few years, maybe the next 20 years or even longer,” he said.
He recalled that the impact of the agreement will only occur after the seventh year, so there will be a slower adaptation process. “It’s a positive agreement, we have reason to celebrate, but not with a short-term impact,” said the president of Anfavea.
