Argentina Updates Agricultural Products and Manufactured Goods Trade Rules

Argentina has issued supplementary notifications to its regional trade agreement framework, affecting agricultural products, manufactured goods, and textiles through updates to the Argentina, Brazil, Paraguay and Uruguay regional trade agreement.

Compliance Analysis: Argentina’s Recent Updates to the MERCOSUR Regional Trade Agreement Framework

Argentina, alongside Brazil, Paraguay, and Uruguay, has notified the World Trade Organization (WTO) of modifications to its regional trade agreement (RTA) under the Transparency Mechanism for Regional Trade Agreements (WT/L/671). These updates specifically affect goods—particularly agricultural products, manufactured goods, and textiles—through amendments to the Partial Scope Economic Complementarity Agreement No. 18 (AAP.CE 18.190). The changes introduce temporary tariff reductions for specific product subheadings under MERCOSUR Trade Commission Directives, granting Argentina preferential rates for defined quotas and periods.

Key Regulatory Updates

The modifications are implemented via Appendices 97 and 100 to Additional Protocol No. 190 of AAP.CE 18.190, which incorporate two MERCOSUR Trade Commission Directives:

Detailed Provisions by Source

1. AAP.CE 18.190 Appendix 100 (Directive No. 124/24)

• Scope: Applies to goods under subheading 2905.19.92 (HS Code), which covers specific chemical products, likely industrial alcohols or polyhydric alcohols (e.g., glycerol derivatives)¹.
• Tariff Reduction: Argentina is granted a 2% tariff rate (down from the standard MERCOSUR Common External Tariff, which typically ranges from 0% to 14% for chemicals)¹.
• Quota: The reduced rate applies to a maximum of 3,600 tonnes of imports¹.
• Duration: The measure is valid for 365 days, effective from 2 January 2025¹.
• Legal Basis: Implemented via MERCOSUR Trade Commission Directive No. 124/24, adopted on 13 November 2024 and incorporated into AAP.CE 18.190 through Appendix 100¹.
• WTO Notification: Submitted under Paragraph 14 of the Transparency Mechanism for RTAs (WT/L/671) on 6 November 2025¹.

2. AAP.CE 18.190 Appendix 97 (Directive No. 106/24)

• Scope: Applies to goods under subheading 3304.99.90 (HS Code), which includes cosmetics and beauty products (e.g., lipsticks, makeup preparations)².
• Tariff Reduction: Argentina is granted a 2% tariff rate (down from the standard MERCOSUR tariff, which may range from 16% to 20% for cosmetics)².
• Quota: The reduced rate applies to a maximum of 50,000 units of imports².
• Duration: The measure is valid for 365 days, effective from 2 January 2025².
• Legal Basis: Implemented via MERCOSUR Trade Commission Directive No. 106/24, adopted on 24 October 2024 and incorporated into AAP.CE 18.190 through Appendix 97².
• WTO Notification: Submitted under Paragraph 14 of the Transparency Mechanism for RTAs (WT/L/671) on 6 November 2025².

Compliance Requirements for Businesses

1. Eligibility for Tariff Reductions:
   • Importers must ensure products fall under the exact HS subheadings (2905.19.92 or 3304.99.90) and comply with the quota limits (3,600 tonnes or 50,000 units, respectively)^{1, 2}.
   • The reduced tariff applies only to imports into Argentina from MERCOSUR member states (Brazil, Paraguay, Uruguay)^{1, 2}.

1. Documentation:
   • Importers must provide proof of origin (e.g., MERCOSUR Certificate of Origin) to qualify for the reduced tariff^{1, 2}.
   • Customs declarations must reference the applicable Directive (No. 106/24 or No. 124/24) and the quota allocation^{1, 2}.

1. Timeline:
   • The measures entered into force on 2 January 2025 and expire after 365 days (i.e., 1 January 2026)^{1, 2}.
   • Importers must monitor quota utilization to avoid exceeding the limits, as the reduced tariff ceases once the quota is exhausted^{1, 2}.

1. Official Sources:
   • Full texts of the Directives and Appendices are available at:
   • ¹(https://www2.aladi.org/nsfaladi/textacdos.nsf/4d5c18e55622e1040325749000756112/fd5cf7ca37bda74103258bdd0060f6c9?OpenDocument)¹.
   • ²(https://www2.aladi.org/nsfaladi/textacdos.nsf/4d5c18e55622e1040325749000756112/8c8d6d4d75635a9e03258bc5004592ba?OpenDocument)².

Summary Answer

Argentina’s recent updates to the MERCOSUR regional trade agreement (AAP.CE 18.190) introduce temporary tariff reductions for two product categories:

1. Chemical products (HS 2905.19.92): A 2% tariff rate applies to a 3,600-tonne quota under Directive No. 124/24 (Appendix 100)¹.
2. Cosmetics (HS 3304.99.90): A 2% tariff rate applies to a 50,000-unit quota under Directive No. 106/24 (Appendix 97)².

Both measures are effective from 2 January 2025 for 365 days and were notified to the WTO under Paragraph 14 of the Transparency Mechanism (WT/L/671)^{1, 2}. Importers must comply with quota limits and origin requirements to benefit from the reduced rates. For further details, refer to the official texts of¹(https://www2.aladi.org/nsfaladi/textacdos.nsf/4d5c18e55622e1040325749000756112/fd5cf7ca37bda74103258bdd0060f6c9?OpenDocument) and¹(https://www2.aladi.org/nsfaladi/textacdos.nsf/4d5c18e55622e1040325749000756112/8c8d6d4d75635a9e03258bc5004592ba?OpenDocument)^{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