United States and Japan Launch WTO Challenges to Argentina's Trade Restrictions

August 23, 2012

On August 21, 2012, the United States and Japan each requested World Trade Organization (WTO) consultations with Argentina regarding certain trade restrictive measures. According to the Office of the United States Trade Representative (USTR), these measures include Argentina’s broad use of non-transparent import licensing requirements that have the effect of unfairly restricting U.S. imports. The United States is also challenging Argentina’s informal trade balancing requirements such as requiring companies to agree to export as much as they import, to make investments in Argentina, and/or to lower prices of the imported goods in order to receive import authorization. The European Union requested consultations with Argentina regarding the same issues this past May.

Argentina has been expanding the list of products subject to non-automatic import licensing requirements since 2008, and in February 2012 adopted additional licensing requirements that apply to all imports of goods into Argentina. The request for consultation formally initiates the dispute settlement process at the WTO. Under WTO rules, if the dispute is not resolved within sixty days, the United States may request that a dispute settlement panel be established.

Following the United States’ request for consultations, Argentina announced that it would file a WTO complaint regarding U.S. meat and lemon import policies. Argentina also filed a WTO complaint on August 17, 2012, against the European Union regarding Spanish restrictions on biodiesel imports from Argentina.

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