The European Commission issued a report questioning what the organization considered the increase of “protectionist measures” applied by Argentina and Brazil and affirmed such moves affect products’ entry to the region.
“Re-industrialization and import substitution policy applied by Argentina continues and goes against imports,” the document reads and quotes the obligations that Argentine companies must follow requesting the government’s authorization to import products.
The report, addressed to the European Council -the 27 European Union’s Heads of State and Government forum, that meets this week in Brussels to discuss growth and employment-, points out the “lack of progress” in certain trade areas and targets also Brazilian import measures.
The EC found “worrying” the government’s “active intervention” allowing certain industrial sectors and services –such us the mining activity, auto manufacturing, shoes, chemical and textile products, banking services, insurance and media-, to “increase their local production”.
In that sense, the European organism also criticized the expropriation of energy giant YPF from Spain’s Repsol last year calling it “discriminatory” as it «only» seized the Spanish firm’s majority stake in the company.
The report by the European Commission comes in a context where the Eurozone seeks to foster foreign trade and battle recession and unemployment that has hit historic rates over the past months.
Source: Buenos Aires Herald