Argentina says reaches car trade deal with main buyer Brazil

New cars are transported in a truck in Sao Bernardo do Campo April 29, 2014. REUTERS/Paulo Whitaker

BUENOS AIRES (Reuters) - Argentina and Brazil have agreed to extend a bilateral deal on automobile exports for another four years, the Argentine government announced on Saturday after a round of trade talks in Brasilia.

The deal allows Brazil to export $150 in vehicle value for every $100 it imports from Argentina.

“We are very satisfied to have arrived at an agreement that will permit us over the years ahead to maintain conditions for balanced development, attract investment and create jobs in our country,” the Argentine government said in a statement.

Demand is weak in both countries, as Brazil, the top foreign buyer of Argentine cars, weathers its steepest recession in generations, and Argentina grapples with high inflation and a stagnant economy.

Reporting by Walter Bianchi; Editing by David Gregorio