Colombia’s government is studying measures to ease restrictions on imports of auto parts in a bid to reverse a fall in local vehicle assembly, Finance Minister Mauricio Cardenas said.
“To make this sector more competitive we’re going to have to move toward allowing auto parts to come without restriction from any country, so that Colombia’s vehicle assembly industry doesn’t disappear,” Cardenas told reporters in Bogota today. Colombia is following a model that was implemented with success in Mexico, Cardenas said.
Colombia’s vehicle industry contracted 28.9 percent in August from a year earlier, contributing to a 3.9 percent percent drop in industrial output, the national statistics agency said in a report published Oct. 18. The contraction in industry was worse than the forecast of all 21 analysts surveyed by Bloomberg.
Colombia will announce its decision later this week, Cardenas said.
General Motors Co., Renault SA, Mazda Motor Corp and Toyota Motor Corp have assembly operations in Colombia.