Decree n. 10.448/2020 enacted the Economic Complementation Agreement n. 74 (ACE74) between Brazil and the Republic of Paraguay. Bilateral trade of automotive products will be fully liberalized by the end of 2022.

The ACE74 agreement established full liberalization to the imports of automotive products from Paraguay and a maximum 2% import tariff on Brazilian automotive exports to Paraguay, that shall be fully liberalized by the end of 2022. The decree enacted the agreement with full compliance.

The conditions of the agreement are valid for unlimited time or until the automotive sector is completely adapted to the General Regime of Mercosur, which provides for common external tariff (CET/TEC) within 11 tiered-levels between 0% and 20%.

In 2019, Brazil exported US$ 415 million to, and imported US$ 235 million from, Paraguay in automotive products.

Links to the agreement and to its first additional protocol regarding automotive products (both in Spanish) can be found here.