US drops Argentina from trade preference system over more than $300 million in unpaid damages
Until Argentina pays up, the country no longer qualifies under a U.S. trade preferences law that enabled $477 million in Argentine goods to enter the United States duty-free last year, U.S. Trade Representative Ron Kirk said.
Nearly all the world’s countries get the U.S. preferences, which as of Monday apply as well to the Republic of South Sudan, Kirk announced. That leaves Argentina in the company of Syria, Belarus and the rest of Sudan as the only countries not eligible, the U.S. Trade Office said.
President Barack Obama notified Congress of the move in a note that accused Argentina of “not acting in good faith.”
The trade preference system was created in 1974 to promote developing countries, and now enables nearly 5,000 kinds of products to enter the U.S. market free of import taxes, saving their producers a total of $18.5 billion worldwide.
Obama announced the move only two days after the Argentine Embassy in Washington had sponsored a Cabinet-level mission to promote U.S. trade and investment. It’s the second critical announcement from Washington this month; the U.S. government also included Argentina among countries most affected by money laundering.
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