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Veronica Dalto
Buenos Aires, Dec 25 (.) .- Argentina hopes to enter into a new negotiation with the next government of the United States, led by Democrat Joe Biden, on the high tariffs applied by Washington to biodiesel, a market of about 1,200 million dollars, and reach an agreement similar to the one reached with the European Union (EU).
On the trade agenda with the United States, biodiesel exports are a permanent claim that is part of a global relationship where the new program with the International Monetary Fund (IMF) and the Pfizer (NYSE 🙂 rank first.
When Biden won last November, Argentine Foreign Minister Felipe Solá expressed his interest in “freeing up trade issues” with the US. “To cite an example: the biodiesel market was closed to us, which is 1,200 million dollars per year, no joke, they took that market away from us exclusively for reasons related to North American producers, who are less competitive than ours.”
In the Ministry of Foreign Affairs, it is understood that the new administration, unlike Donald Trump, will be more pro-market and will pay less attention to the less competitive producing sectors in the US.
The US industry made a claim for alleged dumping and subsidies in the Secretary of Commerce of its country, which resulted in tariffs of more than 130% for exports of Argentine biodiesel, which has a high level of competitiveness.
“For Argentina that generated a very great concern because biodiesel was the main export product (to the US), by far, and it was an important figure for a country that needs to export and needs to add value to its exports,” Luis told EFE Zubizarreta, president of the Argentine Chamber of Biofuels (Carbio).
Argentina never cut off the dialogue with the US, but it has not achieved results. And it maintains a claim process that is currently in court at the New York International Trade Court. It is understood that it cannot aspire to a zero tariff, so it seeks to reopen the market through a “mutually convenient” agreement to achieve an export quota and a higher than competitive price.
“What we want is something similar to what we did with the European Union, an agreement in which we limit ourselves to a commitment to certain restrictions that leave the concerns of the American side alone and allow us to have the market open,” he said. Zubizarreta.
Today with the European Union “there is an agreement that is confidential,” he emphasized.
“In the ideal world, trade is free. We understand that there are currently more restrictive currents, and it would be reasonable to reach something negotiated between the countries. Restrictions in quantity and some price conditions below the current one. We are willing to give that talk “he added.
The litigation and arbitration instance before the World Trade Organization (WTO) is also pending, but for now Argentina prefers not to venture there, not only because of the time taken by the process but because it is counterproductive with the rest of Argentina’s agenda with USA.
THE IMF AND THE VACCINE LEAD THE AGENDA
“I would relativize it a bit because Biden is not going to throw Trump’s policy overboard,” Eva Bamio, project leader of the Abeceb consultancy, a member of the US Chamber of Commerce in Argentina (Amcham), told EFE about the administration of trade with tariffs, although it expects more attention to the WTO.
“Argentina is not in a position to play friend, but Trump did not put it in the role of enemy,” added Bamio, who understands that the relationship between the two countries today is going through an institutional channel that is professionally managed.
The Argentine foreign minister created a stir by interpreting that in the first conversation between President Alberto Fernández and Biden, in early December, the US director at the IMF, Mark Rosen, asked for an attitude of “good faith” with Argentina.
Bamio understands that during the Trump administration the US “did not block the debt swap or the negotiation with the IMF. They were not cooperative, but they did not block.” And that Argentina today has the possibility of building the relationship with Biden from scratch, who, he understands, will not give priority to Latin America either, but will put corruption and climate change issues on the table.
The Argentine Foreign Minister had recalled that the US is the first direct investor in Argentina (if the European countries are considered separately).
Bamio recalled that the US has companies in Argentina that employ people and that have invested “iron”, plants and technology in the country in the automotive, petrochemical, energy, food, commercial, professional services sectors, etc .: “Argentina’s own problem is that if you are a foreign investor you cannot get the fruit of your investment “.
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