Argentina, Brazil strike automotive trade deal: source By Reuters

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Argentina, Brazil strike automotive trade deal: source

Published Jun 24, 2016 11:06PM ET

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Argentina, Brazil strike automotive trade deal: source

BUENOS AIRES (Reuters) - Argentina and Brazil have agreed to extend a bilateral deal on automobile exports for another four years, a source with knowledge of the talks told Reuters on Friday.

The deal allows Brazil to export $150 in vehicle value for every $100 it imports from Argentina. The extension of the accord was negotiated by representatives of both countries in Brasilia.

Demand is weak in both countries, as Brazil, the top foreign buyer of Argentine cars, weathers a recession and Argentina grapples with high inflation and the fallout from a December currency devaluation of about 30 percent.

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