Four
Argentina WTO Disputes Reach Panel Stage
The disputes lodged by the US, EU, and Japan
against various Argentine import policies have advanced to the panel stage,
after the three complainants presented their second panel requests to the WTO’s
Dispute Settlement Body (DSB) on Monday. Meanwhile, Buenos Aires’ challenge to
Washington’s restriction of imports of Argentine beef has also moved forward at
the global trade arbiter, while its complaint against the EU over Spanish
policies on biodiesel imports has been put on hold.
On
28 January DSB meeting, a single panel was established to hear the challenges
filed last year by Brussels, Washington, and Tokyo City over Buenos Aires’
alleged restrictions on imports (DS438, DS444, and DS445, respectively) The
move comes just days after Argentina announced that it had taken steps to
remove some of the policies cited in the case.
Since February 2012, Buenos Aires has subjected all imports
to a registration and pre-approval regime. Under the policy, importers have
been required to file sworn affidavits to AFIP, the Argentine tax agency, and
then wait for approval or rejection.
On 25 January, however, Argentina announced that it would be
repealing the controversial policy, which had also come under scrutiny by some
of its Mercosur partners as well as domestic
importers. “Argentina understands that with this measure we are giving a
positive solution to the dispute as it pertains to the claim concerning the
non-automatic import licenses,” the Argentine delegate said at Monday’s DSB
meeting.
In its statement, Argentina also noted that it had removed
those automatic import licenses that had also been part of the EU’s claim,
following Buenos Aires’ consultations with Brussels late last year.
Other policies that had been cited by the three complainants
included Buenos Aires’ requirements that importers balance imports with
exports, increase investment in production facilities in Argentina, increase
local content of products manufactured in Argentina, and refrain from
transferring revenue abroad.
Buenos Aires has repeatedly argued that its policies are in
line with WTO rules, and that - given the high volume of exports by those
trading partners to the South American country - its regulations are clearly
not protectionist.
While Mexico had also submitted a consultations request
regarding the Argentine import policies (DS446), that case is not advancing to
the panel stage. Mexico City had originally submitted a first panel request in
November, but subsequently dropped it after clinching a separate auto trade
deal with Buenos Aires.
Panama has also filed a WTO complaint against Argentina,
citing in its challenge restrictions on both goods and services trade. (DS453)
That challenge is still in the consultations phase, having only been filed on
12 December. Under WTO rules, complainants can only request a panel following a
consultation period of a minimum of 60 days.
Meanwhile,
a separate dispute lodged by Argentina against the US is now also at the panel
stage, after Buenos Aires reported that its consultations with Washington over
the latter’s restrictions on Argentine beef imports had been unsuccessful
(DS447).
The South American country has argued that the US’ ban of the
former’s beef imports - specifically of fresh, chilled, or frozen bovine meat -
are without justification. Washington has blocked Argentine beef on sanitary
and phytosanitary (SPS) grounds, namely over concerns
about foot-and-mouth disease (FMD).
The US and Argentina have also been sparring at the WTO on
another SPS-related front - specifically over Washington’s restrictions on
imports of Argentine lemons (DS448). However, a second panel request has not
been made in that case; Argentina had filed a first request in December, which
was blocked by the US at the time.
Under WTO rules, respondents in a dispute are allowed to
block one panel request; if a second request is made, a panel is automatically
established.
A
separate case lodged by Argentina against the EU at the WTO, meanwhile, has
been put on hold for the time being, after EU member state Spain issued a new
regulation altering its April biofuels rule. (DS443)
The Spanish rules at issue specifically favoured biofuels
produced in the European Union over their non-EU counterparts, and were part of
a larger piece of legislation implementing the 27-country bloc’s Renewable
Energy Directive. The April move, which came swiftly after Buenos Aires’
nationalisation of Spanish-owned oil and gas company Repsol
YPF’s Argentine subsidiaries, was seen as specifically timed to target the
South American nation - though the legislation had already been prepared
beforehand.
Argentina and Indonesia rank as the first and second largest
biodiesel suppliers to Spain, respectively. In 2011, Argentine biofuel exports
to the EU member state were worth €750 million, according to Spain’s Renewable
Energy Producers Association.
In its official bulletin, Spain modified its April regulation
on both 16 October and 22 December, effectively nullifying the parts of the law
with which Argentina had taken issue. In the first announcement, Madrid
explained that its modifications were in order to ensure that fuel prices did
not reach even higher levels than where they currently stand.
While Argentina had welcomed the October changes, it argued
at the time that the modifications might not be enough to guarantee restored
access to the Spanish biofuels market, and therefore waited until the December
modification before announcing that it would be holding off on further WTO
action.