Argentina accuses EU before WTO for restriction imposed on bio-fuel imports
Argentina has taken the first steps toward formally accusing the European Union of violating World Trade Organization rules in a dispute over restrictions on bio-fuels exports to the EU from the Mercosur member country.
In a statement Saturday, Argentina's Foreign Ministry said the administration of President Cristina began the accusation process Friday. “Yesterday Argentina initiated the process to formally accuse the EU for its decision to impede accesses of Argentine bio-fuel, thus violating the WTO norms” said the release.
Last April the Spanish government had announced limitations on the imports of Argentine bio-fuel to protest the decision from the administration of President Cristina Fernandez of seizing control of 51% of Repsol YPF holdings.
According to Argentina the Spanish decision “established a ban on imports of bio-fuel from outside the EC, pushing aside the Argentine produce, which is leader in the world in efficiency and costs”. The Argentine government also recalled that the “main providers of bio-fuels to Spain and the EU are from developing countries”.
Last year Argentina, the world’s third exporter of soy oil, shipped 1.6 million tons of bio-fuels to other countries, equivalent to two billion dollars.
Last week the Argentine government announced it was opening its borders to soybean from Paraguay and Bolivia to fill the idle capacity of the domestic oil-seed crushing plants, almost 24% of the industry, according to Deputy Economy minister Axel Kicillof.
Earlier this year, Argentina lodged a protest with WTO committee on technical barriers to trade due to Spain's bio-diesel policy. But Argentina is currently the target of an EU complaint at the WTO due to its controversial import restrictions.
Argentina has intensified trade barriers this year to bolster its international reserves by trimming its import bill. Argentine companies have to file an online affidavit with the federal tax authority and receive approvals from several government agencies before they can import goods or pay for offshore services like music rights or legal consulting.
The foreign ministry said Argentina's trade measures are legitimate and aimed at protecting the country from the global crisis that has its origins in developed countries.
At the same time Argentina is fighting to open markets for its bio-fuels, the Cristina Fernandez administration recently hiked export taxes on the fuel in a move that some analysts say could hurt the industry.
Bio-diesel will now face the same 32% export tax as soy-oil, which is the main feedstock used to make the fuel. Previously, the bio-fuel export tax stood at about 20%.
In 2011, Argentina was the world's No.2 bio-fuels producer, with about two-thirds shipped abroad. Argentine bio-fuel exports totaled 2.4 million metric tons last year, up from 1.9 million tons in 2010, according the Latin American & Caribbean Council on Renewable Energy.
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53 comments Feed
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Argentina can impose import restrictions but no one else can.
Argentina steals a Spanish company and the moans when Spain stops buying from them.
Argentina is selling less bio-fuel so it increases the cost
Nothing ever changes.
Why on earth do you even like the retarded woman anyway? (is it because she spouts lefty carp all the time, even tho Peronism isn't a left-wing ideology).
And since CFK is putting up export taxes on bio-fuels why should any country in the world pay more for something that they can get cheaper elsewhere?
But as always Argentina trys to play the victim card. The problem is that they've played it so often now that it's becoming a bit like the boy who cried wolf. No one believes them anymore.
The exports should start dropping further as she increases the costs. Also, USA is changing over to sorghum bio-fuels, which will further reduce RGs exports.
Eu have been practising protectionism on agricultural products since... bloody ever, and long before Argentina imposed their own restrictions.
You mean the EU protected their trade because of them knowing that Argentina would do the same in the future?
Even if its true, so what? A free market economy allows countries to decide who they want to buy their products from.
CFK's wonderful economic model is pricing Argentina out of the market. Why buy their more expensive fuel when you can get it cheaper from Uruguay? Or Brazil? Or China? Or India? Or Germany? Or the UK? Or the USA? Or another dozen or more countries?
You see the rest of the world will do what's right for them, and by right, I mean that which will cost them less in the long run.
But good news for Uruguay, their exports should go up!
You are Uruguayan today aren't you Guzz? Or are you Swedish? Or Norwegian? Or Argentinian?
It must be difficult to be loyal to all those different countries that you supposedly have as your nationality.
Oh but then you're not loyal to any of them, except Argentina, are you?
“Even if its true, so what? A free market economy allows countries to decide who they want to buy their products from.”
I agree, and if you too agree with your own words, bloody shut up about Arg protectionism, they have the same right to protect their goods as you lot have.
My nationalities are Uruguayan and Swedish. It's not that many, actually, if you count them one by one, it's.... two.
Aug 20th, 2012 - 11:16 am
Guzz.
EU countries decide who they will and will not buy from, Mercosur countries decide who they will and will not buy from. No great shakes really but you and your government seem to think otherwise. It looks to us like you think it is okay for you to pick and choose but we must do your bidding as and when you see fit.
You know how South America rejects 'colonialism'? The EU does too including this new Argentinian brand of economic colonialism. So you and your government can stick it and spin on it at the WTO.
You okay with that?
You lot started with the protectionism, and now you accuse CFK of protectionism. Who is the one picking and choosing here?
I don't know what you call it, but the EU imposes taxes on agricole goods imported from outside EU. Let me, using your words it would be.... yes, “creating exception import tariffs”. Hey! Isn't that what you just accused Arg of?
Diddums!!!
Aug 20th, 2012 - 12:20 pm
If I go into a shop for something but I don't like the price I have the option not to buy. I have the option to go somewhere else for what I want. If the EU imposes restrictions it is their choice, their risk and you can shop elsewhere if you wish. That is the EUs loss. Likewise, if Argentina does something similar then we are also perfectly free to shop elsewhere. We cannot force you to shop with us and you cannot force us to shop with you. Why are you so angry about this concept?
By the way. It is very convenient that you are Swedish now. Very interesting.
I agree, so tell your mates to stop crying about Arg protectionism. If they don't understand, explain to them what you just explained to me.
I'm Uruguayan, with passport, holding a Swedish passport as well. Is that ok with you? I forgot to ask you when I got it, sorry...
Aug 20th, 2012 - 12:37 pm
I am telling everybody Guzz and I don't see anybody 'crying' anymore than you are.
Yes it is okay to be Swedish or Uruguayan or Jamaican or American or whatever you want to be. I just think it is interesting that, with the current news stories doing the rounds that you decide to tell us that you are Swedish that is all. Oh apart from the fact that I don't believe you and I am convinced that your are an Argentinian. No big deal. Fill yer boots. It isn't very important really, not to me at least.
Never said I was Swedish, it says Swedish on one of my passports, although it says Uruguayan on the other.
To be honest, your impression of me isn't very important to me either, so lets leave it at that...
1) TMBOA has had a hissy fit and unilaterally decided 'someone' has to pay for the reduction in sales of BD to the EU;
2) Spain announced in April what was effectively a decision not to buy BD from Argentina in protest to TMBOA stealing 51% of YPF.
Question: what has that got to do with the EU? Has the EU dictated that every member country MUST stop buying BD from Argentina? I don't think so.
So, we have an 'internal' problem between two countries, brought about by theft.
The WTO is bound (politely) to tell TMBOA to fcuk off and stop bothering them.
Ha, ha, ha to the power google. :o)
Watch this space!
Therefore by similar inspection, the import restrictions by Argentina are based on BILATERAL matters, since it is certain products from separate countries that is being affected, and not entire treaty concerns, which means they are an “internal” problem between two countries.
You say that in a free market you get to choose what you want to buy, but it doesn’t work like that in Europe. The European agricultural policy subsidised European agricultural produce meaning your choice is partly made by pricing. To be fair on Brits, it is the Frogs who have fought bitterly to keep restrictions on agricultural imports and these measure are generally disapproved of in the UK. But you are part of the EU so you haven’t much choice.
All trade blocks protect what they consider to be key industries – either key technologically, politically or economically.
The daft thing about the Argie position is that they want to fight the EU head on – just pointless. What they should do is swallow their pride, play by the house rules and up their game. Who would have thought 10 years ago that the Koreans would be making serious inroads in the EU car market. They have come from way behind, worked hard, invested wisely and now they are reaping the dividends.
@redpoll
Interesting. I am watching the space.
You forget that the house rules are set up for you to always lose. So maybe its better to burn the house down.
Argentina (politicians and system) really the world doesnt owe you a favour. And really be more grateful for all that Argentina has and could be with or without interacting with Europe, US etc. Time to grow up and perhaps set a precedent. First step: ditch the religion of nationalism
I think the La Campora trolls are laughable, probably lead by Fatsimo Kirchner.
You forget the the house rule are set up to always lose for cheaters. Whose hgouse will you wish you could burn down.........have you found sanity ......la cas rosada? Pink is such a pretty color.....ash black is stunning.
You claim at 26 that post 23 is by a Timmerman troll.
I am not an Argie, I am a Brit living in Uruguay and detest the Argie Malvanistas.
The “others” have been blocking, tariffing, and banning argentine products for decades, so it was y'all who started it. Just because prior governments didn't have the guts to call you out, doesn't mean that now that we are we somehow are starting it.
You all had protectionist barriers for far longer than 2012.
But it would be good if Argentina was more manly and did not winge when things go against it, as a result of it's own decisions.
So no one buys the fuel, Argentina gets no money from the export taxes, and loses customers (even their good friends China who are very canny at sniffing out a good deal), and they seem to think that's unfair?
Well, CFK, this is YOUR economic model in practice.
TTT
I’m not calling Argentina hypocritical. I’m just saying it is better to play by the house rules in every trading block and get your share of the trade, than to pick a fight with everyone and get banned. For example, China makes it hard for foreign companies to do business there yet US, EU, Korea, etc all work hard to get in there and get a piece of the market.
Australia, Israel, Japan, Korea, Mexico, New Zealand, Norway, Panama, Switzerland, Taiwan, Thailand and Turkey. The initiative was later joined by Chile, Colombia, Peru, China, Hong Kong and Malaysia. However no Mercosur member figures in the list.
I'm in Denmark because of the deep sea port, I really want to see it happen, I owe you no excuses
Always with a 'meta', they never stopped fighting
When I first came to Uruguay, and let me say again what a fantastic country with great people it is, I was concerned about the new Presidents background.
This soon went away with how he handled matters and the economy continued to go forward.
Of late though, things seem to have changed. His comment that 'the President sometimes has to ignore the Law' was diabolical; his subservient attitude shown to our friends from the south is now way out of proportion for a respectful relationship.
It is making me wonder if the man is ill or the stress of Office is too great.
The reason I speak my mind about Uruguay stems from my love of the country and the people and my frustration when Pepe seems not to care. This lack of apparent 'care' confuses me greatly.
I hear you. Same here. There are some who still cling to their romantic notion of resurrecting ideological battles of the past - dinosaurs who will thankfully soon be extinct.
I think only Evo is still fighting the war of the pacific...and doing about as well as his ancestors did 130 years ago.
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