Fact Check: Argentina

906 days, 20 hours, 53 minutes ago

SINCE RUFO EXPIRED

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Cristina’s Rift with the US Grows: Obama Administration Calls Argentine Trade Restrictions “Repulsive”

Yesterday, the Obama administration said that Argentina’s trade restrictions constitute “one of the most repulsive practices” in violation of international trade rules, noting that it will use “all of its pressure” to ensure Argentina lifts its absurd restrictions.

We’ve reported on the alienation of the United States government by Argentina’s leaders. The attacks on the Obama Administration by Economy Minister Axel Kicillof for “not setting limits on a judge” probably haven’t helped Argentina’s cause.

Senator Robert Menendez, Chairman of the Senate Foreign Relations Committee, was blunt in his criticism of Argentina’s leaders when he recently stated:

 There is no reason that a member of the G20 should fail to meet its international financial and legal obligations.  Last month’s decision by the U.S. Supreme Court should have sent a clear signal to the Government of Argentina that it needed to enter into good faith negotiations with its creditors. Instead, the Kirchner Administration has engaged in a dangerous game of international brinkmanship that will likely have catastrophic consequences for Argentina’s economy and its citizens.

And this latest denunciation of Argentina’s conduct from the United States comes after last Friday’s negative ruling from the World Trade Association (WTO), which issued a ruling opposing Argentina’s licensing rules used to restrict imports.  Argentina is not only violating U.S. laws, but is also violating international rules as well.

Even though Argentina’s leaders claim the country is “not in default,” they have chosen this path.  Default has already begun to produce horrible consequences for Argentina and as such, it must pursue even more radical and protectionist measures to forestall the exodus of capital from the country.

The longer Argentina chooses to prolong this process, the more harm caused to individual Argentines and the country’s economy and the more isolated from the rest of the world Argentina becomes.