Brussels 04/02/2013 (Agence Europe) - Spain's withdrawal of its measures to limit Argentinian biodiesel imports has led Argentina to not go ahead with its action at the WTO.
The changes introduced (in October and December of last year) by Spain to its national regulation on biofuels, amended in April 2012 to limit imports of Argentinian biodiesel, prompted Argentina at the end of January, to suspend its complaint submitted to the WTO at the end of August 2004 against the EU (DS 443). It lodged the complaint in protest against Spanish measures.
Spain decided to restrict imports of Argentinian biodiesel as a reprisal against Argentina's nationalisation at the beginning of April 2012 of 51% of the national YPF company, which was at that time controlled by the Spanish oil company, Repsol, and which effectively resulted in a de facto expropriation.
Repsol takes Argentina to ICSID. Seven months after its expropriation, the Spanish oil group launched a complaint against Argentina at the International Centre for Settlement of Investment (ICSID) at the beginning of December 2012. This complaint rejects the arguments put forward by Argentina of underproduction and underinvestment and the value at which the takeover of the company's shares had been set. Repsol estimated that its share of YPF was worth $7 billion. The Spanish group also believes that Argentina breached an agreement promoting and protecting reciprocal investment signed with Spain in 1991. Repsol will clarify the exact amount it is claiming in compensation at the ICSID once its complaint has been registered and the settlement body on its case has been put into place, which can take between three and six months. (EH/transl.fl)