Mexico and Argentina agreed Friday to resume trade in automobiles, ending a six-month-old dispute by striking a deal that will reduce the number of cars exported to Argentina without tariffs. "We have reached an agreement to resume auto trade and the normal exchange of goods between Mexico and Argentina," Mexican Economy Minister Ildefonso Guajardo Villarreal told a news conference.
Under the agreement, Mexico will export $575 million worth of light vehicles in 2013 and $625 million in 2014, or 40 percent fewer cars than before Argentina pulled out of the auto trade pact in June. Buenos Aires suspended the trade agreement for three years in June, complaining that it was running a $700 million deficit. In response, Mexico, Latin America's top car exporter, lodged a complaint at the World Trade Organisation.