Colombia. Asopartes rejected a proposal for a 10% increase in tariffs applicable to vehicles, auto parts, motorcycles, auto parts and bicycles.
This measure, part of the National Reindustrialization Policy, generates a series of negative impacts that would affect the sustainability and competitiveness of the Colombian automotive industry.
Carlos Andrés Pineda, president of Asopartes, said that this tariff increase would have direct effects not only on the motor industry, but also on key sectors such as the transport of heavy and light cargo and passengers, negatively impacting the cost of basic products and essential services.
"While we understand the need to diversify the productive matrix and promote a more sustainable economy, this draft decree could aggravate the economic situation of many sectors," Pineda said. "The increase in tariffs would put more pressure on prices to the final consumer and would affect the transport of essential goods."
Key impacts of the measure:
- Increased Transportation Operating Costs: The increase in tariffs would increase the operating costs of trucks, tractor-trailers, and public transportation, which would affect the supply chain of basic products such as food and medicines. This is in addition to the already high prices of fuel and tolls, which could generate a generalized rise in the prices of products.
- Promotion of the Informal Market: The increase in tariffs could encourage the entry of low-quality auto parts and motorcycle parts, increasing informality in the market and putting the safety of users at risk. "The informal market could be reinforced by non-certified products that affect the competitiveness of national manufacturers," Pineda said.
- Impact on End Users: The increase in tariffs could skyrocket vehicle maintenance and repair costs, directly impacting millions of Colombians, especially those in rural and low-income areas, who rely on transportation for their daily mobility.
Faced with this panorama, Asopartes made an urgent call to the National Government to initiate an open dialogue with the actors of the automotive sector, in order to seek more balanced and viable alternatives. The Association's proposals include:
- Tax and financial incentives: To promote the production of sustainable and certified quality auto parts and motorcycle parts.
- Viable tariff measures: That promote environmental sustainability without affecting the competitiveness of the industry or costs for consumers.
Pineda concluded by stressing that Asopartes is committed to the formalization of the sector, road safety and sustainability, but that these objectives must be achieved in a way that does not compromise the competitiveness or well-being of Colombians.
The Association reiterated its willingness to participate in working groups with the Government and other key actors in the sector, in order to find solutions that achieve a balance between reindustrialization, sustainability and inclusive economic development.
