MercoPress. South Atlantic News Agency

US fears Falklands-related sanctions could hit American companies

According to Clarín, Washington has put forward two options: freezing the bill, its preferred choice, or amending it so that US companies are excluded

The US government has conveyed to Javier Milei’s administration its concern that the National Sovereignty Defence bill, which toughens sanctions against those involved in exploiting resources in the Falklands, could reach American companies, the Argentine newspaper Clarín reported, citing unnamed officials in Washington.

“We see that the law is going to affect US companies, we are in contact with them and they have received notifications. Our interest is that they are not affected,” one of them told the newspaper. Others warned that the sanctions could become “a market barrier for trade and investment”. The concern centres on the fact that the bill extends penalties not only to companies operating in the archipelago but also to their affiliates, financial intermediaries, shareholders and suppliers.

According to Clarín, Washington has put forward two options: freezing the bill, its preferred choice, or amending it so that US companies are excluded. The newspaper says the issue has opened a rift within the Argentine cabinet. Neither the State Department nor the Argentine government has commented. On the sovereignty dispute, the US position remains one of neutrality, with no intention of mediating, according to the same source.

The concerns come ahead of a regional visit by Deputy Secretary of State Christopher Landau and Assistant Secretary for Western Hemisphere Affairs Juan Pablo Segura, who will be in Asunción and Buenos Aires between October 19 and 26. The State Department said they will meet senior officials and business leaders to advance the Andes-Atlantic Corridor, an infrastructure project worth some US$7 billion. Clarín suggests the bill could be on the agenda, though nobody has confirmed this.

The 133-article bill failed to secure committee approval in the Chamber of Deputies last week and was left off the agenda of the session planned for October 21, amid opposition objections to its security and defence chapters. The United Kingdom announced on Tuesday measures to prevent its companies from having to comply with Argentine sanctions.