G/TRIMS/ Q/ARG/ 2 
22 May 2017 
(17-2749) Page: 1/2 
Committee on Trade -Related Investment Measures  Original:  Spanish  
 
  ARGENTINA – ACT 27,263 ON THE DEVELOPMENT AND STRENGTHENING  
REGIME  OF THE ARGENTINE AUTOPARTISM, PUBLISHED IN THE  
OFFICIAL BULLETIN ON 1 AUGUST 2016  
REPLIES TO QUESTIONS FROM MEXICO1 
The following communication, dated 12 May 2017, is being circulated at th e request of the 
delegation of Argentina . 
 
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Question  1 
At last October's meeting of the Committee, Argentina observed that the Act 
establishing the Development and Strengthening Regime of Argentine Autopartism, 
which provides tax benefits and incentives, was not being applied since the National 
Executive had not adopted the relevant implementing regulations. Could Argentina 
please provide an update on the latest steps it has taken towards implementing this Act 
in accordance with WTO obligat ions?  
 
Question  2 
When does Argentina think that the administrative provisions for the implementation of 
Act 27,263 will be made known?  
 
Question 3 
Although Argentina mentioned that the law was not being applied, there is currently an 
Internet portal which  speaks of  the procedure by which to apply for  
the benefit  (http://www.produccion.gob.ar/regimen -de-desarrollo -y-fortalecimiento -del-
autopartismo -argentino ), so that it is not clear whether or not this regime is already in 
operation . 
 
Question  4 
If the Portal is only there to receive applications wh ile awaiting the publication of the 
corresponding implementing  regulations, does Argentina intend  that the benefits and 
incentives regime should  be applied retroactively ? Would  this retroactivity enter into 
effect at the same time as the Act itself ( August  2016) or at some subsequent date?  
 
Question  5 
With respect to the goods mentioned in the Act , could  Argentina explain in detail the 
local content conditions for  access to this benefit, and explain how this digital tax credit 
bond can increase in accordance with the local content of autoparts in the end product?  
 
Question  6 
How do the local content provi sions comply with the pro visions of Article 2 of the 
WTO  Agreement on Trade -Related Investment Measures (TRIMs)?  
 
                                                
1 G/TRIMS/Q/ARG/1.  G/TRIMS/Q/ARG/ 2 
- 2 - 
  Question  7 
 
Mexico considers that granting the tax credit bond represents a trade restriction that 
disadvantages autoparts from third countrie s (especially from Mexico) in the Argentine 
market, that displaces Mexican  autoparts exports  in thi rd country markets, and finally  
that leads to price undercutting in the Argentine market . This could have a price 
depressing effect and lead to a loss of sal es for the Mexican autoparts industry in the 
Argentine market.  
 
In view of this situation, could Argentina explain how the benefit of granting a tax credit 
bond is consistent with its obligations under the TRIMs A greement, in particular 
Article  2.1 and 2.2  thereof ( national treatment and quantitative restrictions)?  
 
Replies 
 
Argentina welcomes Mexico's interest in Act 27,263  on the Development and Strengthening 
Regime of Argentine Autopartism . In response to the questions from Mexico contained in 
G/TRIMS/Q/ ARG/1 , dated 1 May 2017, and as follow -up to  the information provided at the 
meeting of the Committee held on 17 October 2016, Argentina wishes to provide the following 
update:  
Following the adoption of Act 27,263  on 13 July 2016 , the regime was regulated by 
Resolu tion No. 599 – E/2016 of the Industry and Services Secretariat of the Ministry of Production, 
which was published in the Official Bulletin on 7 December  2016, the date on which this measure 
entered into force.  
This measure  establishes the Industry  and Services Secretariat of the Ministry of Production 
as the implementing authority of this regime . It also establishes the application requirements for  
companies interested in joining  the regime,  as well as application formalities , the economic and 
productive criteria that will be  applied when examining  applications, and the measures that must 
be adopted for admittance  to the  regime.  
The Act is an instrument underpinning a process aimed at opening  up and global insertion 
that began in December 2015. T he regime aims to transform the productive structure of the 
automotive industry so that it entails  greater specialization and productive integration at the global 
level, which will facilitate the use of international technology and give the sector the competi tive 
edge it needs.  
Enhancing the levels of specialization and economic efficiency of the productive structure will 
no doubt enhance the  flow of trade.  
In order to make the regime application proce ss described in A rticle 29 of Act 27,263  
more transparent a nd predictable, Argentina has created the web portal 
(http://www.produccion.gob.ar/regimen -de-desarrollo -y-fortalecimiento -del-autopartismo -arge ntino) 
specifically  for the purpose of publishing tutorials and a manual on how to submit  the information 
and documentation required to begin the application process . This portal also describes the 
objectives , general characteristics and beneficiaries  of the regime.  
Resolution No. 599 – E/2016 does not permit membership to the regime which is retroactive 
to the law's entry into force : membership come s into effect  once the application for membership 
has been approved by the implementing authority. Such a pproval is to be  granted through a n 
administrative act  of a public nature, which  will stipulate when the regime may be applied to the 
production program me. When determining the relevant  date, t he implementing  authority will take 
into consideration the date on  which the applicant met all formal and technical requirements . In 
this regard, Argentina wishes to emphasize that, to date, no companies have joined  the regime.  
Argentina is open to engaging in a bilateral dialogue with Mexico or any other interested 
delegations in order to address any further concerns regarding  this matter.  
 
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