The European Parliament (EP) today gave its approval to the European Union leaders to take trade measures necessary to protect community investments abroad following the precedent of the nationalization of YPF in Argentina.
A large majority, the Parliament has brought forward a resolution agreed by the major political groups in calling on the European Commission and EU Council to value options such as “possible partial suspension” of Argentina’s generalized system of preferences (GSP).
These advantages tariff benefit in entering the European market of biofuels and the raw material to produce, as well as soy and sunflower oils, essential oils of lemon, shrimp and frozen hake fillets, citrus juices, snuff, tangerines and grapes table.
According to 2010 data provided by the European Commission, Argentine exports to the EU benefited from customs advantages represented 2,400 million euros, representing about 27% of total sales in that country bloc.
The suspension of the GSP is the most aggressive pointing resolution of the European Parliament condemns the expropriation of the subsidiary of Repsol, which has won 458 votes in favor, 71 against and 16 abstentions.
However, the paragraph on the suspension of trade preferences was not supported by the European Socialist Group, which he supported, like the Spanish Socialists, that the most “intelligent” must be a “negotiated” with Buenos Aires.
This paragraph was adopted by 332 votes in favor, 195 against and 16 abstentions.
All groups, except for the Greens / European Free Alliance and the United Left, has “deplored” the decision taken by the Argentine Government to proceed with the expropriation of most of the actions of a European company, because it represents ” a unilateral and arbitrary decision. ”
They also consider that the nationalization of YPF is an “attack on the exercise of free enterprise and the principle of legal certainty, thereby deteriorating the business environment for EU businesses in that country.”
The EP resolution notes that this decision “refers to a single company in the industry and only a portion of its shareholders, which could be considered discriminatory”, in his opinion.
Moreover, MEPs have warned in the text that decisions as taken by the Argentine authorities can “thin the atmosphere of cordiality and understanding necessary” to close the ongoing negotiations of an association agreement with Mercosur.
“For these negotiations are successful, both parties have to talk in a spirit of openness and mutual trust”, say the MEPs.
“The pressure to be exercised in agreement with Mercosur, political pressure is the best weapon that the EU has against Argentina,” explained sources of the European Parliament.
The EP response to Argentina’s decision has been cooked throughout the week, including two debates on the response to give to Buenos Aires with the EU High Representative, Catherine Ashton and Vice President of the EC, Antonio Tajani , who joined the opposition to the expropriation.
Tajani said Wednesday that his office has canceled his schedule of meetings with Argentine businessmen next week and claimed that the case is not a conflict YPF of Spain, but only across the EU, an idea which impacted Ashton and most Spanish MEPs.
Those who voted against the resolution, as the Spanish Raul Romeva (ICV) and Ana Miranda (BNG), argue that it is “confusing the interests of a country with a business” and that “the Argentine people have the right decide on the management of their resources. “
Category: Business News