Brazil and Argentina move forward with Digital Certificate of Origin
Brazil and Argentina move forward with Digital Certificate of Origin Pilot Project (COD)
Aiming to extend and deepen the bilateral trade as well as to promote integration between Brazil and Argentina
Marcos Piacitelli of Thomson Reuters states, “Ministers from Brazil and Argentina signed a document in order to guide the technical areas of both countries to continue with the Digital Certificate of Origin Pilot Project (COD), aiming to extend and deepen the bilateral trade as well as to promote integration between Brazil and Argentina. In addition, the deal with the Digital Certificate of Origin may save 35% of costs associated with issuing the certificate of origin (CO), in addition to reducing logistics costs for the company.
Time saving is another target of such innovation. Currently, CO issuance takes up to 24 hours, lasting up to three days when the representative agency is located outside the region of the requesting company. But with this new digital innovation, the expectation is that it will only take 30 minutes.”
The Trade Facts between Argentina and Brazil
Information Derived from Thomson Reuters
From January to July 2016, the bilateral trade between Brazil and Argentina registered USD $12.5 billion. Argentina figures as the third-largest trading partner of Brazil, behind only China and the United States.
In that period, Brazilian exports to Argentina decreased 1.8% over the first seven months of 2015 from USD $7.6 billion to $7.5 billion. Argentina’s market share in Brazilian exports in 2016 is 7%.
So far this year Brazil recorded a surplus of US $ 2.5 billion. Brazilian exports to Argentina are as follows by aggregate factor: 93.5% of manufactured goods, 3.2% of commodities and 3% of semi-manufactured goods. The composition of imports, on the other hand, was 75% of manufactured goods, 21.6% of basic goods and 3.4% of semi-manufactured goods.
In 2015, trade between Brazil and Argentina totaled $23 billion, with exports of USD $12.8 billion and imports of USD $ 10.2 billion, resulting in a surplus for Brazil of $2.5 billion.
The main products exported by Brazil in 2015 were passenger cars (19.9%); parts and accessories for motor vehicles and tractors (9.6%); cargo vehicles (6.1%); engines for motor vehicles and parts (3.1%); and polymers of ethylene, propylene and styrene (2.8%).
The main imported products are:
Passenger cars (18.9%)
Cargo vehicles (17.7%)
Wheat grain (9.1%)
Parts and accessories for motor vehicles and tractors (4.6%)
Polymers of ethylene, propylene and styrene (3%)
The trade in the automotive sector, taken together, accounted for about 50% of bilateral trade.
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