August 23, 2012

After the South American country said it planned to challenge the measures at the World Trade Organisation, the US defended its restrictions on Argentina's imports of beef and lemons amid escalating tensions over Argentina's trade policies.

On Tuesday (Aug 21), the US and Japan challenged Argentine government regulations that require prior approval of nearly all foreign purchases as a violation of WTO rules.

Argentina's Foreign Ministry did not comment directly on the US and Japanese complaints but said it would file a complaint at the WTO over Washington's policies that hamper lemon and fresh beef imports.

"The US is surprised and disappointed at Argentina's reaction," USTR spokeswoman Nkenge Harmon said in an emailed statement.

"It appears to be part of a disturbing trend in which countries engaged in actions that are inconsistent with their WTO obligations retaliate with counter complaints rather than fix the underlying problem raised in the complaint," she added.

US trade officials have read news reports that Argentina plans to challenge the lemon and beef restrictions, but have not received official word of any action, Harmon said.

"Nonetheless, I can say that all US measures relating to imports of Argentine products, including lemons and beef, are science-based and consistent with WTO requirements," she said.

"The fundamental openness of the US market and the consistency with which our country applies import measures is reflected in trade data," she added, apparently referring to the huge US trade deficit with the rest of the world.

However, Argentina is one of the few countries with which the US enjoys a trade surplus. Last year, it exported US$9.9 billion worth of goods to Argentina and imported US$4.5 billion from that country.