Common Automotive Policy between Argentina and Brazil: its impact at local and regional auto parts industries

Publication Type:

Conference Paper


Gerpisa colloquium, Kyoto (2014)


It is well known that the automotive industry emerged, around the world, under a myriad of government regulations that tried both to channel and to boost its development (Drahokoupil, 2008; Freyssenet, 2011; Humphrey, Leclerc and Salerno, 2000). Even though Argentina and Brazil are not an exception to this rule (Humphrey, 2003; Lopez, 2008; Miozzo, 2002; Vispo 1999), regulations in those countries have a specific feature.
Because the structural shortage of foreign currency has an unavoidable obstacle to development, (Bértola, Higachi and Porcile, 2000; Braun and Joy, 1981; Canitrot, 1975; Gárriz, Panigo, Médici and Gallo, 2012; Panigo, Kiper and Gárriz, 2011; Souza and Jaime, 2002), and because regional automotive industry has always had a great impact on the trade balance of Argentina and Brazil, the set of both regional and national level regulations has sought to promote a growing and sustainable (in terms of current account) automotive cluster (Arza, 2011; López, 2008; Vispo, 1999).
Taking into account that the CAP will expire in 2014, and that both countries currently show a structural Trade Balance deficit in the auto parts segment of the automotive chain value (Gárriz, 2013; Sindipeças and Autopeças, 2013), our main objective is to evaluate the effects that this agreement, its antecedents and subsequent amendments had on the dynamics and configuration of auto components trade in the 1991-2012 period.
Focusing on the aggregate auto parts segment and any comprised system, we will try to verify whether the CAP was an effective policy to:
1.Create genuine and symmetric intraregional trade;
2.Achieve a geographically diversified export pattern from a common regional export platform.

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