The European Union has agreed to file a trade suit against Argentina's import restrictions with the World Trade Organization (WTO), a senior Spanish government source said on Monday, reports Reuters.
Argentina has fined Telefonica 43 million dollars for a mobile phone service interruption last month, which threatens to further exacerbate tensions between the two countries.
Argentine Foreign Minister Héctor Timerman said the recent criticism from the European Trade Commissioner Karel De Gucht regarding the YPF expropriation is “unacceptable,” and assured that it “surprised him due to his tone and approach”.
European Trade Commissioner Karel De Gucht said Argentina is in for long term consequences after sending “shockwaves” internationally with the announced plans to expropriate 51% of YPF shares owned by Spain-based Repsol oil and gas company.
Argentine President Cristina Fernández vindicated her decision to expropriate YPF, assuring that her Government “remains convinced that all Argentines should be in control of the country’s natural resources.”
Argentine Foreign Minister Héctor Timerman is in the middle of a major diplomatic blunder through a baffling series of statements regarding a letter sent by the EU to his office last week, according to a report published in the Buenos Aires Herald.
The European Union is planning to lodge a complaint at the World Trade Organization over Argentina's import restrictions and is seeking other trading partners to back its presentation, a source familiar with the situation said on Tuesday according to news agencies.
Spain’s main oil corporation Repsol warned it could take legal action against companies that invest in YPF after Argentina seized control of the Spanish company's energy unit last week.
The European Commission in its latest report on trade and investments complains about Mercosur protectionist policies, restrictions to maritime transport and to the export of commodities particularly from Brazil and Argentina.
Major trading nations led by Argentina, Brazil and Russia are raising barriers to international and threatening the global economic recovery, the European Union's executive arm said on Wednesday.