U.S. Seeks WTO Dispute Settlement Panel on Argentina Trade Restriction Measures
The U.S. has asked the World Trade Organization to establish a dispute settlement panel on Argentina's trade restrictive measures applied to all U.S. goods imported into Argentina, said U.S. Trade Representative Ron Kirk. He said the restrictive measures include the broad use of non-transparent and discretionary import licensing requirements that unfairly restrict U.S. exports.
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Argentina also disadvantages U.S. exports by requiring importers to agree to undertake burdensome trade balancing commitments in exchange for authorization to import goods, Kirk said. The European Union, Mexico and Japan have also requested the establishment of panels on these matters.
The U.S. requested formal consultations with Argentina Aug. 21 (see ITT's Online Archives 12083115). The U.S. and Argentina held consultations Sept. 20-21, but did not resolve the dispute.
USTR said Argentina has greatly expanded the list of products subject to non-automatic import licensing requirements since 2008, to about 600 eight-digit tariff lines in Argentina's goods schedule. Among the affected products are laptops, home appliances, air conditioners, tractors, machinery and tools, autos and auto parts, plastics, chemicals, tires, toys, footwear, textiles and apparel, luggage, bicycles and paper products, USTR said. And, in February 2012, Argentina adopted an additional licensing requirement that applies to all imports of goods into the country.
Argentina also adopted informal trade balancing requirements and other schemes, in which companies seeking authorization to import products must agree to export goods of an equal or greater value, make investments in Argentina, lower prices of imported goods and/or refrain from repatriating profits, USTR said.
USTR said the actions are inconsistent with WTO obligations, and appear to violate Article XI:1 of the General Agreement on Tariffs and Trade 1994. They also appear to violate the Agreement on Import Licensing Procedures, it said.