Brussels, 16/01/2015 (Agence Europe) - On Thursday 15 January, the WTO appellate body fully confirmed its findings of 22 August 2014 on complaints from the EU, US, and Japan against a series of obstacles from Argentina to importing products from these countries on the Argentine market. Argentina is therefore asked to fall into line with world trade rules.
The WTO appellate body confirmed that Argentina should no longer require foreign companies: - to limit their imports; - to offset the value of imports with equivalent exports; - to use a certain amount of Argentine content in their products; - to invest in the country and keep their profits there. The appellate body also confirmed that Argentina should not require foreign companies to obtain approval for their imports using the procedure known as the Advanced Sworn Import Declaration.
At the end of September, Argentina appealed the decision of the WTO's dispute settlement body of 22 August concerning three separate complaints to the WTO from the EU (DS 438), from the US (DS 444) and from Japan (DS 445) which accused Buenos Aires of adopting restrictions penalising their exports to the Argentine market by obliging their companies that wanted to export there to import Argentine goods in return. One of the most well-known examples is the obligation for German car manufacturer Porsche to buy Argentine wine and olive oil in return for allowing around a hundred cars into Argentina.
“Argentina should now renounce its practices, allowing European Union companies to resume normal business with their Argentine partners”, the European Commission commented on Thursday.
The objective of the measures taken by Argentina, as part of a so-called “managed” trade policy, was to substitute imports with locally-sourced products, and to reduce its trade deficit. Its measures put a heavy burden on importers of EU products to Argentina and impaired the ability of foreign companies to operate in Argentina. The measures triggered a strong international reaction with three disputes being brought in May 2012 by the EU, US and Japan, which resulted last summer in the WTO's condemnation of the Argentine import regime. (EH)