Buenos Aires’ trade policies
fell under harsh scrutiny at the WTO last week, when the US, EU, Japan, and 11
other members openly criticised
the South American country for its strict import controls.
Friday’s joint statement,
which was read out at a meeting of WTO Council on Trade in Goods by US
Ambassador Michael Punke, decried Argentina’s import
policies as “unbefitting any WTO member, particularly a member of the G-20 who
has committed to refrain from raising new barriers to trade and investment.”
The statement was also backed
by Australia, the EU, Israel, Japan, Korea, Mexico, New Zealand, Norway,
Panama, Switzerland, Chinese Taipei, Thailand, and Turkey.
“The lack of transparency in
Argentina’s implementation and administration of its import licensing regime
creates profound uncertainty both for exporters and potential exporters to
Argentina, as well as for investors in Argentina,” the 14-member group argued.
Other countries that raised
concerns at the meeting over Argentina’s import controls included Chile,
Colombia, Malaysia, Peru, Singapore, and Hong Kong, trade sources said. For its
part, China commented that it hoped the measures were only temporary.
The criticism referred
specifically to the increased number of products that have been subject to
non-automatic import licensing since 2008, along with a new policy implemented
earlier this year that requires all Argentine companies to file affidavits and
wait for government approval before they can import.
The new policy, which was
announced in January and entered into force on 1 February, has already drawn a
cautious response from Argentina’s partners in the South American customs union
Mercosur; however, none of Argentina’s Mercosur partners, which include Brazil, Paraguay, and
Uruguay, signed onto the joint statement.
The February import policy is
Buenos Aires’ latest attempt to combat a falling trade surplus and protect both
its stock of international reserves and local industry. The
country’s overall trade balance dropped by 13 percent to US$10 billion during
the first 11 months of 2011.
The products currently
requiring an import license to enter Argentina include 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, among others, the group claimed.
Argentina lambasts statement
Shortly after the meeting, the
Argentine Foreign Ministry issued a statement defending Buenos Aires’ policies.
The foreign ministry promised
that the Argentine government would “continue exercising the sovereign control
of its trade policies,” while staying in line with WTO rules. Buenos Aires
would reject “any type of external interference,” the ministry added.
“It’s noteworthy that the
initiative was launched by countries that have increased their exports to
Argentina by 25 percent, surpassing their average level of exports to the rest
of the world,” the foreign ministry continued, noting that Argentina was the
G-20 country that increased its imports the most this past year.
“It is also telling that none
of the countries participating in the Goods Council session have presented a
specific case in which Argentina has violated the rules of the WTO and that the
signatories [of the statement] are basing their complaints on vague stories
published by the local press,” the foreign ministry argued.
Following the complaint at
Goods Council meeting, several imports that had been awaiting government
approval received a green light from Argentine customs authorities, according
to Argentine newspaper Clarín.
“There are companies that had
been blocked for some time, and Friday at the last minute their requests were authorised,” Miguel Ponce of the Argentine Chamber of
Importers told Clarín. “While there isn’t any
concrete information, we hope this means that the [approval] process will be
accelerated.”