US, EU, Japan Join Mexico in Advancing Challenge to Argentine Import Restrictions

The requests by the US, EU, and Japan for the WTO to form a panel to rule on the Argentine import controls follow a similar request by Mexico last month, and signal the next stage in the WTO’s dispute settlement process(DS438, DS444, DS445, and DS446). First launched by Brussels in May, the initial action challenging the Argentine measures was subsequently supported by Washington, Tokyo, and Mexico City, who all decided in August to file similar complaints of their own.

Representing some of Argentina’s biggest trading partners, the complainants criticise the measures for discriminating between imported and domestic goods and for being based on policies which they say are protectionist.

Since February 2012, Buenos Aires has subjected all imports to a registration and pre-approval regime. Meanwhile, the list of products subjected to non-automatic import licensing requirements has been expanded significantly, the complainants say. In addition, they note, imports into Argentina are systematically delayed or refused on non-transparent grounds.

While import licenses are permitted under WTO rules, they must be approved automatically; any non-automatic import licenses must comply with specific WTO requirements, including that they be issued within 60 days.

Detractors also complain of informal trade balancing requirements adopted by the Argentine government, under which local importers must agree to export goods of equal value, increase local content of the products they manufacture in Argentina, or refrain from transferring revenues abroad.

The Argentine measures are said to affect products ranging from cars and clothes to agricultural goods and chemicals.