Argentina and Mexico signed a new automotive trade agreement in Buenos Aires that runs until March 2019 and is based on a quota system, officials said.
The agreement, which replaces one that expires on Thursday, was signed by Mexican Economy Secretary Ildefonso Guajardo and Argentine Industry Minister Debora Giorgi.
Under the terms of the new agreement, "bilateral trade in the motor vehicle sector will be duty free under a system of quotas and compensated trade, returning to free trade by March 19, 2019," the Mexican Embassy in Buenos Aires said in a statement.
The agreement allows light vehicles and parts for automobiles traded by Mexico and Argentina to be exempt from duties as long as they do not exceed the quotas for each year.
The 2015 quota has been set at a maximum of $575 million and will increase to $638 million in the last year of the deal.
"The increase in quotas is consistent with the expected evolution of the market," the statement said. "Both countries are committed to return to a free trade regime after March 19, 2019."