US asks for WTO action against Argentina

The Obama administration has asked the World Trade Organization to probe alleged restrictions of U.S. exports to Argentina in the latest sign of deteriorating relations with the leftist government of President Cristina Fernández. 

The United States wants the global trade body to set up a dispute settlement panel to investigate Argentina's alleged use of “non-transparent and discretionary import licensing requirements that have the effect of unfairly restricting U.S. exports.” Argentina is also accused of disadvantaging U.S. exports by “requiring importers to agree to undertake burdensome trade balancing commitments in exchange for authorization to import goods.”

“Argentina’s persistent use of protectionist measures broadly impacts all U.S. exporters of goods to Argentina,” U.S. Trade Representative Ron Kirk said Thursday. “It is vital to American workers that our exporters obtain fair and equal access to foreign markets, as required by our trade agreements. Today’s step reflects the Obama Administration’s commitment to ensuring that our trading partners play by the rules so that our companies can compete on a level playing field.”

The move comes as the United States and Argentina are locked in a bitter fight over $1.3 billion in debt that Argentina owes to international creditors — including New York funds — following its default a decade ago. A federal judge in New York ruled late last month that Argentina must pay the entire amount by Dec. 15.

The House Foreign Affairs Committee's Western Hemisphere panel last week approved legislation to shut Argentina out of U.S. capital markets. Democrats objected because the issue is making its way through U.S. courts.

Thursday's announcement comes after the United States and Argentina held unsatisfactory consultations in September. The European Union, Mexico and Japan have already requested the establishment of WTO panels aimed at Argentinian trade practices.

---