Milei and Noboa signed bilateral agreements in Quito; automotive sector reduces tariffs

President Javier Milei began his regional tour in Ecuador, where he was received by his counterpart Daniel Noboa at the Carondelet Palace. The Argentine delegation included the Secretary General of the Presidency, Karina Milei, and Chancellor Pablo Quirno. During the bilateral meeting, several agreements were signed, including the Bilateral Automotive Regime Protocol, signed by Quirno and Ecuador’s Minister of Economic Development, Sariha Moya.

According to Economy Minister Luis Caputo, in his X account, the new automotive trade agreement establishes that Argentine vehicles will go from paying from 28% to a general tariff of 10%, with 0% access for electric and hybrid vehicles and auto parts. Caputo described the agreement as «a very important step to regain presence in the region, boost investments, and strengthen the competitiveness of our industry.» He also projected that «in the coming year we will double current exports, generating more investment and more quality employment.»

In addition to the automotive protocol, other instruments were signed: the Air Services Agreement, the Extradition Treaty, the Cooperation Agreement for the Peaceful Use of Nuclear Energy, the Joint Declaration on IUU Fishing, and the Cyber Defense Cooperation Agreement. These were signed by Quirno with Ecuadorian Chancellor Roberto Kury and with Defense Minister Gian Carlo Loffredo, according to official sources.

Tour context

The visit to Ecuador is the first stop of a regional tour that includes a stop in Colombia for the presidential inauguration of Abelardo de la Espriella. The delegation left for Quito the previous night and is scheduled to travel to Colombia at the end of the day. In Quito, Milei laid a floral offering at the Monument to the Heroes of August 10, 1809, and held a meeting with representatives of Argentine automotive chambers, including leaders from ADEFA, AFAC, ACARA, Toyota Argentina, Ford South America, and VW Group Argentina.

The affinity between Milei and Noboa dates back to the Ecuadorian president’s visit to Buenos Aires a year ago, when he posed with a machete, a symbol of his state adjustment proposal similar to Milei’s chainsaw. The tour occurs in a context of tension with the government of Brazil, led by Lula da Silva.

Details of the automotive agreement

Caputo’s announcement specifies that Argentine vehicles will go from paying from 28% to a general tariff of 10%, with 0% access for electric, hybrid, and auto parts. It was not specified whether 28% was the maximum tariff or the one applied to all cars, nor whether other prior conditions existed. The implementation timelines and rules of origin to access the 0% are also not detailed.

Official sources indicated that both countries «signed new cooperation instruments in strategic areas,» but the full text of the automotive protocol was not published.

Value module: tariff reduction

The difference between the previous tariff and the new one is 18 percentage points. The calculation is based on data released by Caputo: previous tariff 28%, new tariff 10%.

• Document: Publication on the social network X by Luis Caputo, Minister of Economy, reproduced by Crónica.
• Organization and date: Ministry of Economy of Argentina, August 7, 2026 (date of publication, according to the context of the note).
• Unit: Percentage points.
• Values used: 28% (previous tariff) and 10% (new tariff).
• Operation: 28 – 10 = 18 percentage points reduction.

No conversion to other currencies is made because no exchange rate data is available in the sources.

What data to follow

The point to follow is the publication of the full text of the Bilateral Automotive Regime Protocol in the Official Gazette of Argentina or in Ecuador’s official records. That document will allow verifying the implementation timelines, rules of origin, and conditions for the 0% tariff on electric and hybrid vehicles. Also relevant will be the first report on automotive exports to Ecuador, which ADEFA could publish in the coming months, to contrast the projection of doubling exports.