WORLD TRADE  
ORGANIZATION   
G/C/W/667 
4 April 2012  
 
(12-1781) 
Council for Trade in Goods Original:   English 
  
 
ARGENTINA'S IMPORT RESTRICTING POLICIES AND PRACTICES: JOINT 
STATEMENT BY AUSTRALIA, THE EUROPEAN UNION, ISRAEL, JAPAN, KOREA, 
MEXICO, NEW ZEALAND, NORWAY, PANAMA, SWITZERLAND, CHINESE TAIPEI, 
THAILAND, TURKEY AND THE UNITED STATES 
 
 
 The following joint statement de livered by the United States on behalf of the delegations of  
Australia, the European Union, Israel, Japan, Korea, Mexico, New Zealand, Norway, Panama, 
Switzerland, Chinese Taipei, Thailand, Turkey a nd the United States at the Council for Trade in 
Goods meeting on 30 March 2012, is being circulated at the request of those delegations. 
 
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  We would like to express jointl y our continuing and deepening co ncerns regarding the nature 
and application of trade-restrictive measures take n by Argentina, which are adversely affecting 
imports into Argentina from a growing number of WTO Members.  
 These measures include the overly broad use of non-automatic import licensing trade 
balancing requirements, and pre -registration and pre-approval of all imports into Argentina. 
 Since 2008, Argentina has greatly expanded the list of products subject to non-automatic 
import licensing requirements.  Currently, an impor t licence is required for approximately six hundred 
8-digit tariff lines in Argentina's non-agricultural goo ds schedule.  The products affected include, but 
are not limited to, laptops, home appliances, air cond itioners, tractors, machinery and tools, autos and 
auto parts, plastics, chemicals, tires, toys, footwear, textiles and a pparel, luggage, bicycles, and paper 
products.  
 A non-automatic licensing requirement is WTO incompatible unless it is necessary to 
implement measures which are imposed in conformity with the relevant WTO rules and does not have trade-restrictive or trade-distortive effects on imports beyond those caused by the underlying 
restriction.  The non-automatic licensing requirement must comply with all relevant provisions of the 
Agreement on Import Licensing Procedures, including a maximum processing period of 60 days.  
 Companies from many of the Members that s upport this statement report that Argentina's 
non-automatic import licensing scheme has a trade-restri ctive effect on imports and that there are long 
delays in the issuance of import licenses.  Many  companies have reported wait periods of up to 
six months and longer.  In some instances, companies are denied import licenses altogether, without 
justification or explanation. 
 The lack of transparency in Argentina's im plementation and administration of its import 
licensing regime creates profound uncertainty both for exporters and potential exporters to Argentina, 
as well as for investors in Argentina.   G/C/W/667 
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   In January 2012, Argentina announced regula tions that went into effect on 1 February, 
requiring pre-registration, review and approval of each and every import transaction.  These 
regulations are creating long delays and resulting in huge costs for many of the exporters from 
Members supporting this statement.   
 It appears that this new system is operating as a de facto  import restricting scheme, on all 
products.  
 Argentina has made clear through public governme nt statements that is has also adopted an 
informal "trade balancing" policy, whereby comp anies seeking to import products must agree to 
export, dollar for dollar, goods of an equal or greater value or establish production facilities in 
Argentina.   
 Many companies have reported receiving telephone  calls from Argentine government officials 
in which they are informed that they must agree to undertake such trade balancing commitments prior 
to receiving authorization to import goods. 
 The Ministry of Industry's website is replete with press releases announcing these trade 
balancing and domestic produc tion arrangements.  These arrangements include well known 
automakers agreeing to export products such as  wine, olive oil, and soy meal, and requiring 
companies across a number of sectors to undertake production in Argentina without reference to the 
economics of doing so.  
 Argentina may claim that companies enter into these arrangements voluntarily, but many of 
the Members supporting this statement share con cerns that it may be operating otherwise.   
 We are not aware of any official directive or resolution setting out these trade balancing or 
investment requirements.  However, high level Ar gentine government officials have been quoted in 
the Argentine press as saying quite clearly that the purpose of these requirements is to improve its trade balance by restricting imports and promoting exports. 
 Many of the Members that support this joint st atement today have previously raised concerns 
about Argentina's increasingly protectionist measur es both bilaterally and multilaterally beginning in 
2008 when Argentina began progressively expandi ng the number of products subject to its 
non-automatic import licensing requirements.  
 Concerns have been raised and questions have  been directed to Argentina in the Committee 
on Import Licensing, the Committee on Agriculture, a nd in this Council.  However, Argentina has 
failed to adequately address these concerns or respond to Members' questions.   
 Indeed, rather than eliminating these import-re strictive measures and practices, Argentina has 
introduced new measures, and the existing measures have become increasingly problematic for our 
exporters. 
 The import-restrictive measures and practices that Argentina has put in place are unbefitting 
any WTO Member, particularly a member of the G-20 who has committed to refrain from raising new barriers to trade and investment.  In light of the shared goal of making every effort to sustain global 
economic growth, Argentina's measures, which clearly  limit the growth-enhancing prospects for trade, 
are particularly troubling. 
 We Members who support this Joint Statement re quest that Argentina take immediate steps to 
address the concerns we have raised today, and that many Members have raised in the past, by 
removing or terminating these import-restrictive measures and practices.  G/C/W/667 
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   If, on the other hand, despite the concerns d escribed above, Argentina continues to maintain 
these import-restrictive measures and practices , Argentina should provide a detailed written 
explanation of why in its view these measures and pr actices are consistent with WTO rules.  Members 
reserve their rights to pursue this matter further. 
 
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