Domestic Auto Parts Industry could lose US$200,000
The Mexican Association of Auto Parts Industry, Industria Nacional de Autopartes (INA), estimated losses for around US$200,000 in production if Argentina does not reconsider its decision to suspend the Agreement for Economic Complementation Agreement (ACE 55) it entered with Mexico.
In an interview, Oscar Albin, Chairman, INA, said that this amount is not so relevant for the sector when compared to the MXP$65 billion in total production and taking into consideration that the largest portion of exports by this industry are made to the United States and Canada.
Auto parts exports to Argentina did not represent a big market for Mexico, it is a lot smaller than Brazil’s, where fortunately auto parts exports quotas were not limited, as was done with automobiles”, he said.
He pointed-out that the impact will be on original auto parts sold to assembly plants in Mexico that export to Argentina, sales that dropped around US$200,000, reducing also the amount of taxes paid.
Source: Notimex | Date: 11/07/2012