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EU requests WTO dispute settlement panel over Argentina's import restrictions

Geneva, 6 December 2012 - The EU has today requested the World Trade Organisation (WTO) in Geneva to rule over a dispute on Argentina's import restrictions which are damaging to European business. The EU is taking this action, along with Japan and the United States, to force Argentina to lift these measures which have been harmful to European trade and investment for more than 18 months. These measures potentially affect all EU exports to Argentina, worth €8.3 billion in 2011. Today's decision follows efforts by the EU to find a solution with Argentina through WTO dispute settlement consultations during the summer which ended without success.

"Argentina's import restrictions violate international trade rules and harm EU exports. The consultations we held with Argentina at the World Trade Organisation did not bring any positive solution. Today's decision is also the outcome of close co-operation with the US, Japan and Mexico. It is the EU's last resort to see Argentina's unfair trade practices lifted and free and fair trade re-established according to the WTO rules to which Argentina has subscribed ", said EU Trade Commissioner Karel De Gucht.

Argentina's import measures have been systematically imposed with a view to pursuing Argentina's stated policy of import substitution and elimination of trade balance deficits, which is inconsistent with WTO rules. These measures take the form of the following:

1. As of February 2012, Argentina has subjected the import of all goods to a pre-registration and pre-approval regime called the "Declaración Jurada Anticipada de Importación";

2. Hundreds of goods also need a non-automatic import license. On the pretence of this requirement, imports are systematically delayed or refused on non-transparent grounds. As of March 2011, more than 600 product types have been affected by this licensing regime.

3. Argentina also requires importers to balance imports with exports; to increase the local content of the products they manufacture in Argentina; or not to transfer revenues abroad. This practice is systematic, unwritten and non–transparent. Acceptance by importers to undertake this practice appears to be a condition for allowing them to import their goods into Argentina. These measures delay or block goods at the border and inflict major losses to industry in the EU and worldwide.

The restrictions which were in place in 2011 affected about €500 million of exports in the same year. As of 2012, the extension of the measures to all products raised the magnitude of the potentially affected trade to all EU exports to Argentina, which amounted to €8.3 billion in 2011. The long-term impact of a negative trade and investment climate is significantly higher.

The EU, together with other major world trading partners, has raised the issue with Argentina repeatedly over the past years without success.

Today, also thanks to a close and constructive co-operation, the EU decides to pursue the dispute at the same time as the United States and Japan. Mexico has already requested the establishment of a panel over the same measures on 21 November 2012. All complainants aim at a joint panel proceeding.