Argentina and Mexico automotive trade agreement stalls

Negotiations regarding the automotive trade agreement between Argentina and Mexico (ACE 55) have reached a standstill. The agreement, which allowed for the duty-free exchange of new vehicles up to an annual cap of USD 773 million, expired on March 18, 2026.

As a result of the stalled negotiations, vehicles imported from Mexico that were not shipped before the expiration date are now subject to a 35% import tariff. This change impacts the price competitiveness of several popular models, including the Volkswagen Taos, Ford Maverick, and various utility or sedan models from Nissan, Chevrolet, and RAM.

The impasse stems from broader disagreements within the ACE 6 general trade framework rather than the automotive sector itself. The administration of Javier Milei has refused to automatically extend the automotive benefits unless Mexico eases restrictions on Argentine agricultural exports, such as beef, soybean oil, and wine. Mexico has previously rejected requests to expand these agricultural trade positions.