Brussels, 23/04/2012 (Agence Europe) - The expropriation of the oil company Repsol from its Argentinian subsidiary YPF is the latest in a raft of restrictive measures to trade taken by Buenos Aires, complains Karel De Gucht.
In a letter dated 19 April to Argentinian Trade Minister Hector Timerman, the EU commissioner for the trade reiterated the “serious concerns” of the EU concerning the overall climate for business and investment in Argentina, with particular reference to the Argentinian government's recent decision to expropriate from the Spanish oil company Repsol its Argentinian subsidiary YPF. “This move sends a very negative signal from the Argentine Government to all international investors in Argentina”, De Gucht explains, calling on Argentina to “seek a mutually agreed solution with the company [Repsol] and to respect its international commitment on the treatment and protection of investments originating from the European Union”, which represent more than 50% of foreign investments made in the country, in particular its bilateral agreement with Spain. The trade commissioner also criticises the fact that this expropriation “adds to a growing list of problematic decisions” taken by Buenos Aires in the areas of international trade and investment. “The high and increasing number of import restricting measures taken by the Argentine Government in application of its discriminatory import substitution policy is a cause of considerable concern. It is has had a significant adverse effect on EU exports to Argentina”, De Gucht continued, pointing out that the EU and 18 other member countries of the WTO, from both the developed and the developing worlds, expressed their concern, at a meeting at the headquarters of the organisation on 30 March, at the protectionist measures taken by Argentina since 2008 (in particular the extension of the list of products subject to import licences in Argentina - see EUROPE 10590). “You are certainly aware of the very serious legal considerations these measures raised from a WTO perspective and the growing concern among WTO members affected by this policy, which is manifestly incompatible with WTO rules”, he said. Lamenting the fact that he had not been able to “clarify and resolve” this issue in his bilateral contacts with Argentina, nor “obtain any valid justification” from Buenos Aires at this stage, De Gucht urges Argentina to “reconsider” its restrictive policy on imports and to abandon all formal measures arising from this. “The EU keeps open all possible options to address this matter at multilateral as well as at bilateral level”, the commissioner added, going on to describe the measures taken by the Argentinian government as “inconsistent” with the spirit of negotiations for an association agreement between the EU and Mercosur. De Gucht criticised the actions as “all the more worrying as they fly in the face of Argentina's pledge, made in the context of the G20, to resist and roll back protectionist trade and investment measures”. (EH/transl.fl)