For a while now, I've been saying that WTO dispute settlement is all about China. But in recent months, it has been all about Argentina. 7 of the last 11 consultations requests have involved Argentina. Let's look briefly at how this all transpired.
Back in September of 2011, The Economist reported on a new wave of Argentine protectionism, which was based on various kinds of measures, including import licensing and trade balancing. In March of this year, the issue of Argentina's restrictions was discussed at the WTO's Council on Trade in Goods, with many WTO Members expressing concerns. But no formal complaint was filed.
Then in mid-April, there was Argentina's decision to nationalize the Spanish-owned YPF oil company. There was talk of a WTO complaint, but it became clear there were no good claims to make, so that never happened. Instead, the EU made plans to challenge the various Argentine trade restrictions noted above in WTO dispute settlement.
There also was this reaction from Spain in late April:
Tensions continue to escalate between Spain and Argentina in the wake of Buenos Aires’ announcement last week that it would be nationalising the Spanish-owned Repsol YPF oil company. Madrid announced on Friday that it would be taking measures aimed at curtailing biodiesel imports from its South American trading partner, as EU officials also voiced their own frustration over the impact of the Argentine decision on Brussels-Buenos Aires trade relations.
At the time, Argentina said it did not plan on challenging the biodiesel measures at the WTO:
“If Spain’s government wants its own businesses to pay more for biodiesel, that’s a sovereign decision,” Kirchner said in response to the Spanish announcement. Buenos Aires can increase domestic demand for biodiesel to compensate, she added.
Argentina will not challenge such measures at the WTO, Kirchner said.
Then on May 25, the EU moved forward with the challenge to the trade restrictions imposed by Argentina, in DS438. That must have caused Argentina to re-think its position on biodiesels, because on August 17 Argentina asked for WTO consultations in that case, in DS443.
At that point, the United States, Japan and Mexico piled on in the trade restrictions case against Argentina, requesting consultations in DS444, DS445, DS446.
Just recently, Argentina responded with complaints against the U.S. on alleged import restrictions on meat products and on lemon, in DS447 and DS448.
No word yet on whether complaints against Mexico and Japan will be coming, or if any further escalation from the U.S. and EU is in the works.
One other issue I have wondered about is whether Argentina would challenge the U.S. decision to suspend GSP benefits. But no word there either.
