Argentina filed a complaint with the World Trade
Organization against the European Union, with the South
American country accusing Spain of discriminating against its
biodiesel exports, reports said on Tuesday.
Argentina claims that Spain put in place a regulation in
April that in effect discriminates against biodiesel imports
from Argentina in favor of those produced in the European
Union, the WTO said in a statement.
With the complaint, Spain now has 60 days to show its rules
The filing comes after the EU made a complaint against
Argentinas import licensing rules. Trade relations
between the two countries have soured since Argentina took
control of oil company YPF, a subsidiary of Spains
Repsol, in April.
Following that development, new Spanish legislation requires
all imported biodiesel to be sourced from EU producers.
The measure effectively blocks imports of the fuel from
Argentina, which had dominated Spains biodiesel market.
Argentina has called the rules protectionist,
warning they could cost it $1 billion/year in lost export
Argentina's Foreign Ministry said Spains rules were an
attempt to stop developing countries from gaining more control
of global value chains and expanding beyond their role as raw
material suppliers, according to a statement obtained by news
Spains rules are in line with the EUs Renewable
Energy Directive, which seeks to raise biofuels use and boost
However, Argentine officials accuse the measures of
violating WTO norms.