MercoPress. South Atlantic News Agency
US warns Argentina could loose trade benefits for not complying international investment rulings
The Obama administration is loosing its patience with the administration of President Cristina Fernandez United States could soon suspend trade benefits for Argentina warned on Monday an official from the Department of Commerce. US accuses Argentina of not paying awards in two long-running investment disputes with US companies following rulings from an international tribunal.
”We hope to make a recommendation to the president (Barack Obama) in the near term,“ a US trade official told an international news agency.
The United States currently waives duties on some imports from Argentina under the Generalized System of Preferences program, a trade program aimed at helping create jobs in developing countries.
”USTR accepted two petitions in June 2010 seeking withdrawal of Argentina's GSP benefits due to the Argentine government's non-payment of two separate ICSID (the World Bank's International Centre for Settlement of Investment Disputes) arbitral awards,“ the US trade official said.
”Our review of the two petitions is at an advanced stage, and the matter is being discussed at senior levels of the administration. The administration takes the two petitions very seriously and has engaged with the Argentine government at the highest levels on the underlying issues,” the official added.
One case is believed to involve Azurix Corp, a Houston-based water services and investment company that was granted a 30-year water concession in Argentina in 1999.
Last year, Representative John Culberson, a Texas Republican, wrote to US Treasury Secretary Timothy Geithner urging him to help Azurix collect an ICSID award from Argentina totalling more than 165 million dollars.
According to the US government the Generalized System of Preferences (GSP) is a program designed to promote economic growth in the developing world by providing preferential duty-free entry for up to 4,800 products from 129 designated beneficiary countries and territories.
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Read all commentsSounds like the UK is having fun with its allies at the expense of Argentina.
Mar 05th, 2012 - 11:24 pm 0Not surprising really given the ludicrous rhetoric and abuse of the Falkland's islanders.
This is what happens when you mess with the big boys of the international community. I should imagine this is just the start of things to come.
No attacks on the UK or any of its islands will go unanswered and the USA is the UK's closest friend even if Obama isn't so willing to maintain the friendship alot of the other powerful people in the USA wish to do so.
Aren't the American's the argies new best friends and allies, supporting them in their dribblings about the Falklands? ha ha ha! The US knows who they would rather fight alongside in the future....
Mar 05th, 2012 - 11:42 pm 0@1 This is all independent of the UK. It's from the Argentinians Default, and their inability to pay US creditors. They basically ignored lots of rulings in the USA and even tried to get the case taken to Argentina where it wouldn't be at all biased.
Mar 05th, 2012 - 11:44 pm 0This has been slow boiling for ages.
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