MercoPress. South Atlantic News Agency

Argentina loses trade restrictions case at WTO, says Brazilian financial media

The case refers to a presentation by 43 countries against a swath of restrictions to favor domestic manufacturing and substitute imports

The World Trade Organization has ruled that a swath of import regulations imposed by Argentina violate international trade rules, according to the Buenos Aires media quoting diplomatic sources and Brazil's financial press. The ruling favors 43 countries those two years ago claimed Argentina had imposed trade barriers.

 The communication apparently has already been passed on to Argentina, although there won't be any formal report until a few weeks time.

In March 2012, the 43 countries among which the EU. US, Australia, Israel, Japan, South Korea, New Zealand, Norway, Panama, Thailand Switzerland and Turkey presented the claim against Argentina's non automatic licenses system plus the pre-registry and anticipated authorization for all imports.

According to the claim Argentina did not adopt these restrictions specifically but for all of its foreign trade with the purpose of enacting the regulations to try to bolster its industrial base and substitute imports with domestically made goods.

Since 2011, Argentina has required importers to obtain licenses from the government that aren't automatically renewed for products ranging from cars to electronics. This is a complicated process that the claimant contends discourages companies from buying foreign-made products. Importers have also been forced to preregister with the Argentine government since 2012.

Argentina has always argued that these measures were not in violation of international trade, and now can appeal the ruling before the WTO Application Organism, which can take several months or years before it decides.

If finally the ruling favoring the 43 countries stands, the claimants will be able to retaliate with “mirror measures” similar to those suffered.

However in this case the WTO must detail how these measures are to be implemented that is if they could also apply the non automatic licenses, special tariffs or other mechanisms.