Mexico preparing WTO case against Argentina over suspension of auto trade accord
Mexico is prepared to take legal actions against Argentina after the government of President Cristina Fernandez announced its decision “to suspend” an automobile trade agreement.
“The Economy Ministry together with the Foreign Ministry is preparing a case with the World Trade Organization against Argentina,” said Economy minister Bruno Ferrari.
“With this, Mexico leaves it clear that it will maintain a strong and energetic position before this situation, using all legal mechanisms in its reach to firmly defend Mexico's commercial interests.”
An Argentine Industry Ministry source confirmed the auto accord would be suspended until Mexico negotiates with Argentina under the same conditions as it negotiated its auto accord with Brazil.
Argentina wants to avoid possible “asymmetries” between itself and Brazil. Argentina and Brazil are full-time members of the Mercosur which also includes Paraguay and Uruguay.
Argentina had asked in March for the accord to be renegotiated because it wasn't seen as sufficiently beneficial, but Mexico decided it wouldn't renegotiate because it had found no basis to do so as it had with Brazil.
Mexico renegotiated an accord with Brazil that same month to increase the amount of locally produced components in vehicles shipped from Mexico to Brazil, and to temporarily limit auto exports to and from both countries.
Ferrari urged Argentina to avoid protectionist policies.
Francisco de Rosenzweig, Deputy Minister of trade, said the term “suspension” isn't part of the legal language typically used to describe such trade agreements.
Ferrari said Mexico is asking Argentina to reconsider its decision to suspend the agreement “which has proved to be a beneficial instrument for bilateral trade relations.”
The trade deal was signed in 2002 between Mexico and the Mercosur countries. According to Mexico's Economy Ministry, Mexico's automobile exports to Argentina last year reached 888.7 million dollars, and the value of exports of automobile parts totaled 109.7 million.
Meanwhile, Mexico imported 237.7 million dollars in automobiles from Argentina and 67.5 million in auto parts.
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Of course in Mexico we could care less, whatever deficits we can have with them its really a drop in our bucket, we import more than 300 billion from the world. But we can continue doing business with Canada, the US, the EU, Chile and many other serious nations who know how to keep a trade agreement and know that free trade is better than protectionism.
This situation with these countries changing their minds every time they cannot compete in fair game, as it happened with ACE-55, only goes to show why the Mercosur is becoming more and more irrelevant every day as the very founding countries engage in mutual protectionist measures and childlike attitudes.
Is this an example of the self serving interest of the Argentines changing things when it doesn't suit them?
I can't wait to see what get's posted by them.
I think its just an example of the rest of the world wanting to bring Argentina into poverty and economic ruin.
For sure, Argentina has provoked many countries on many fronts, but it is undoubtable that the rest of the world has never wanted Argentina to do well.
Agreed, Argentina only stick to the rules when it suits them.“A drop in the bucket ” they are insignificant on the world stage but full of self importance and arrogance.
They why are you here? You think you are significant? Sorry, you aren't.
Could that be it, TiT? Could it be that argieland needs to be a bit more honest? A bit more humble? A bit more willing to operate by the rules? A bit more willing to admit when it is wrong? Are these uncomfortable thought, TiT? Think about them anyway. All normal people have to learn, as they grow out of being children, that they can't have everything they want, when they want it, even if they can't pay for it. They also tend to learn that they aren't always right. Argieland is no different. GROW UP!!
Britain has never admited to being wrong.
Have you, thus, ever grown up?
End of debate.
CFK does not need help from the rest of the world with ruining the economy and making poor more poor, She is doing a fine job of that by herself !
10, good end of your debate, now keep it that way
Argentina is in the weakest position here but I guess they won't realize it until it actually happens and they''ll be forced to beg....We've seen this movie before.
Victim complex? They're all out to get us.Nobody is out to get Argentina, you've brought it on yourselves.There is enough poverty in the world.
Your government tore up a very lucrative hydro carbon agreement, now acting like bullies and you want sympathy?
I always have said Argentina is punking the world. I think the reaction taking 10 years shows how weak the rest of the world is.
That said, Argentina was attacked first, many many years ago by Europe and the USA, in the 1930s and 1940s, both did their best to sabotage our economy. They partly though not wholy succeeeded.
So the first shot across the bow was from you, not surprising given how dishonorable Europeans and Americans are. They are not worthy of respect.
How in the world would a “frontier” economy have any effect on the largest richest countries and trading blocks in the world? There is no country (probably not even Uruguay) that needs any products from Argentina but you NEED to sell to US UK EU to survive. You get that right?
You are absurd and possibly delusional.
Frontier economy?
You all are desperate to sell your products to us. Look how the whole world is scrambling to get to sell to Argentina again.
It is you who are desperate, hahaha. We can live without being able to tap debt.
OTOH, Europe and the USA, and most of Latin America and Asia, would COLLAPSE as societies tomorrow if they had no access to credit like Argentina's situation for 10 years.
This is what will happen soon, and you will see how civilized you get on both sides of the ocean.
Desperate is when you don't have enough U$ to pay to keep your population warm.
Or when you have to flee to a outer Province so as not not provoke one of your recent supporters that has turned on you...
Perhaps, but you know I am right, whether you are man enough to admit it or not.
If (WHEN), the EU and USA no longer can borrow either because the market shuts them down, or they default, or lenders simply run out of money, you will see what desperate really means. Your countries have not had a true credit shut-off since the 1930s (unlike Argentina which has had a couple in 20 years)... Thus your entire personal, family, local, provincial, regional, federal, and transnational economic system is based on debt access and you would not even know how to operate on “cash” or barter.
It's going to happen, for all your claims that Romney is going to balance the budget, you are dreaming. He would have to cut massively everywhere and he won't because he loves spending on the military. Since he won't raise taxes, he can't draw from there. And the economy won't grow anywhere near fast enough to plug the whole...
:(
I don't think you have nay idea how a functioning economy or country really works. You need to travel. We don't all have horse and buggies going down the street picking up garbage you know.
You better increase the amount of tin foil on your head you're getting battier by the minute!
Rule 1 in any commercial transaction- make sure you get paid.
Sometimes overlooked in dealings with Argentina. (ask Repsol).
Or is that TTT?
Good night.
in.reuters.com/article/2012/06/26/argentina-china-idINL2E8HP8XW20120626
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