Argentina launched a challenge at the World Trade Organisation on Wednesday against Spain's biodiesel import restrictions, escalating a trade war triggered when Buenos Aires seized Spanish oil assets.
BUENOS AIRES – Argentina launched a challenge at the World Trade Organisation on Wednesday against Spain's biodiesel import restrictions, escalating a trade war triggered when Buenos Aires seized Spanish oil assets.
"Argentina today protested to the WTO Committee on Technical Barriers to Trade after Spain issued a ministerial order to ban all biodiesel that is not produced in Europe," Argentina's foreign ministry said in a statement.
"It is clearly a protectionist measure, aimed at excluding Argentina and other suppliers from Spain's biodiesel market, in violation of WTC rules," it said.
Madrid announced in April it would favour domestic or European biodiesel – diesel made from vegetable oil or animal fat – over oil from other nations that export to Spain, principally Argentina.
The ministerial order, which introduced a series of "equivalency" measures to help refiners based in Europe, was seen as retaliation over Buenos Aires' seizing control of oil group Repsol's subsidiary YPF.
Spain's biodiesel industry complains that unfairly priced imports from Argentina force it to leave much of its capacity idle because it is unable to compete.
Separately, the European Union also launched a challenge at the World Trade Organisation last month against Argentine import restrictions, which Argentina has called "groundless." -- afp