Brazil and Argentina have concluded talks on an agreement to recognize each other’s vehicle safety standards. The deal will be signed by authorities from both countries in July, a joint statement published Thursday (Jun 30) reads.
As part of vehicle registration, traffic authorities certify compliance with safety standards and authorize circulation in the country in question. Under the pact, Brazil recognizes car models produced in the neighboring country and vice-versa.
The move is expected to facilitate vehicle commerce between the two partner nations, bringing costs down and saving time. “The mutual recognition of vehicle registration favors the development of the automotive sector in both countries and boosts trade flows, in addition to providing more predictability and legal security for investments,” the statement goes on to say.
At first, the deal should cover about 80 percent of safety items for light passenger– and light cargo–vehicles. Items are also expected to expand and new vehicle types should be incorporated, like buses and trucks. In addition, the two governments plan to extend the scope of the compact to include auto parts in the future.
“The agreement meets the interests of the productive sector in both countries, which have on other occasions recognized the importance of even deeper ties, underscoring new opportunities for competitiveness gains, as well as the optimization of costs and investment in a sector so instrumental to bilateral trade,” the joint statement concludes.
Source: Agência Brasil