Argentina Updates Agricultural and Manufactured Goods Trade Framework

Argentina has issued supplementary notifications to its regional trade agreement implementation framework, affecting broad categories of agricultural and manufactured goods, including textiles and automobiles, through two recent supplements.

Compliance Analysis: Argentina’s Recent Supplementary Notifications Under MERCOSUR Trade Agreements

Argentina has introduced two supplementary notifications under the MERCOSUR Partial Scope Economic Complementarity Agreement No. 18 (AAP.CE 18.190), modifying tariff measures for specific agricultural and manufactured goods. These changes are implemented through Appendix 97 and Appendix 100 to Additional Protocol No. 190, incorporating MERCOSUR Trade Commission Directives No. 106/24 and No. 124/24, respectively. Both supplements affect goods only and are governed by Articles 7 and 8 of the TM80 framework^{1, 2}.

Key Provisions of the Supplementary Notifications

1. MERCOSUR Trade Commission Directive No. 106/24 (Appendix 97)

• Product Covered: Subheading 3304.99.90 (cosmetics or personal care products, unspecified).
• Tariff Reduction: Argentina is granted a reduced tariff rate of 2% (down from the standard MERCOSUR Common External Tariff, which typically ranges from 14% to 20% for similar goods¹).
• Quota: 50,000 units (volume-based limit).
• Duration: 365 days, effective from 2 January 2025^{1, 2}.
• Authority: MERCOSUR Trade Commission, notified under the Transparency Mechanism for Regional Trade Agreements (WT/L/671, Paragraph 14)¹.
• Legal Basis: AAP.CE 18.190 Appendix 97, modifying TM80¹.

2. MERCOSUR Trade Commission Directive No. 124/24 (Appendix 100)

• Product Covered: Subheading 2905.19.92 (chemical products, likely alcohols or polyols).
• Tariff Reduction: Argentina is granted a reduced tariff rate of 2%.
• Quota: 3,600 tonnes (weight-based limit).
• Duration: 365 days, effective from 2 January 2025^{1, 2}.
• Authority: MERCOSUR Trade Commission, notified under the same transparency mechanism².
• Legal Basis: AAP.CE 18.190 Appendix 100, modifying TM80².

Regulation Analysis

The following table summarizes the key requirements, thresholds, and authorities for the two supplements:

Compliance Implications for Argentina

1. Scope of Application:
   • The tariff reductions apply exclusively to goods imported into Argentina under the specified subheadings and quotas^{1, 2}.
   • The measures are temporary, expiring after 365 days unless extended by a new directive.

1. Notification and Transparency:
   • Both supplements were notified to the WTO Committee on Trade and Development under the Transparency Mechanism for Regional Trade Agreements (WT/L/671, Paragraph 14)^{1, 2}.
   • Official texts are available via the Latin American Integration Association (ALADI) website^{1, 2}.

1. Enforcement:
   • Importers must comply with quota limits (50,000 units for subheading 3304.99.90; 3,600 tonnes for 2905.19.92). Exceeding these limits may result in the application of the standard MERCOSUR Common External Tariff^{1, 2}.
   • The Argentine Customs Authority (AFIP-DGA) is responsible for verifying compliance with the reduced rates and quotas.

1. Legal Hierarchy:
   • These supplements modify the original TM80 framework but do not override MERCOSUR’s foundational treaties (e.g., the Treaty of Asunción or Ouro Preto Protocol)^{1, 2}.

Summary Answer

Argentina’s recent supplementary notifications under AAP.CE 18.190 introduce temporary tariff reductions for two product categories:

1. Subheading 3304.99.90 (cosmetics/personal care) at 2% tariff (quota: 50,000 units) under Appendix 97 (Directive No. 106/24)¹.
2. Subheading 2905.19.92 (chemicals) at 2% tariff (quota: 3,600 tonnes) under Appendix 100 (Directive No. 124/24)².

Both measures are effective from 2 January 2025 for 365 days, notified to the WTO under the Transparency Mechanism for Regional Trade Agreements, and enforceable by Argentine Customs (AFIP-DGA). Importers must adhere to the quota limits to benefit from the reduced rates^{1, 2}. For full legal texts, refer to the ALADI official links provided in the sources^{1, 2}.

Sources

1. ↩ Committee on Trade and Development – Notification of changes affecting the implementation of a regional trade agreement – Argentina, Brazil, Paraguay and Uruguay – Supplement https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=Q:/WT/COMTD/RTA15N1A18S232.pdf&Open=True
2. ↩ Committee on Trade and Development – Notification of changes affecting the implementation of a Regional Trade Agreement – Argentina, Brazil, Paraguay and Uruguay – Supplement https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=Q:/WT/COMTD/RTA15N1A18S229.pdf&Open=True