Argentina notifies WTO of request for EU consultation regarding Spain's biodiesel import restrictions

Argentina has officially notified the World Trade Organization (WTO) of its request for a consultation with the European Union (EU), following Spain’s decision to restrict biodiesel imports from the country. Argentina argues that the Spanish government’s order, which was approved in April, will effectively discriminate against biodiesel imports from the South American country, and favor those produced in the 27-nation EU bloc.
Spain’s decision to impose restrictions on biodiesel imports from Argentina came after Argentina’s nationalization of YPF, a unit of Spanish refiner Repsol.
In recent years, Spain’s biodiesel sector has been struggling with increased imports from Argentina and Indonesia. The Madrid-based industry group APPA said that biodiesel imports into Spain increased 44% year-on-year to more than 1.2 million metric tons (mt) in 2011, even as local production fell to 650,000 mt.
The WTO spokesman explained that under the rules of the WTO, Spain has 60 days starting from August 17 to explain why its rules are fair. Provided both parties concur, the period can be extended indefinitely. If one of the nations involved remains dissatisfied after the end of the consultation period, WTO will call a panel of experts to rule on the dispute. The process could take around six months, culminating with a ruling which would force Spain to adhere to the body’s international trade norms. (August 21, 2012)