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.
The Argentine government expressed “great concern” on Monday following the decision from the Spanish government to ban bio-diesel “not produced within the European Union” from the country.
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.
World trade growth will slow for a second year to 3.7% in 2012 but “severe” downside risks could drive it further below the 20-year average of 5.4%, the World Trade Organization forecast on Thursday.
Argentina is considering a temporary increase of tariffs on some imports, following on Brazil’s steps, but is also thinking of a formal proposal to its Mercosur partners.
Brazil’s trade surplus fell more than economists expected in January from a month earlier as exports declined at a faster pace than imports. The surplus narrowed to 424 million USD last month from 5.37 billion in December, said the Trade Ministry.
The association agreement between the European Union and Mercosur has to go “beyond tariffs and subsidies”, said Brazilian president addressing businessmen from Brazil and a visiting Italian delegation headed by Prime Minister Silvio Berlusconi.
Brazil is seriously considering retaliation against Argentina for new rules restricting food imports which allegedly compete directly with Argentine production. EU ambassadors in Buenos Aires made a similar presentation before the Argentine congress earlier this week.
While the Argentine government remained silent, European Union country ambassadors showed up at the Argentine Congress Thursday in order to protest against food import restrictions. The ambassadors, however, saved their criticisms and instead spoke in a conciliatory tone before the Lower House Foreign Affairs Committee, although they did not hide their “growing worry.”
The European Union asked Argentina not to restrict food imports, which was reported by manufacturers and producers. Manufacturing sources said that restrictions began being applied in the last few days on products that are also elaborated locally, in a non-written measure that primarily affects the EU and Brazil.