LatinNews Daily Report - 27 June 2012

TRADE | Mexico to take formal action against Argentina. On 26 June the Mexican ministries of economy and foreign relations issued a joint statement announcing that Mexico will take formal action against Argentina for its unilateral decision to leave the 2002 Southern Common Market (Mercosur)-Mexico Economic Complementarity Agreement (ACE) on the automotive sector (ACE55). Mexico will turn to the Latin American Integration Association (Aladi) and the World Trade Organization (WTO) and is “evaluating the adoption of measures or actions to compensate the damages caused by the suspension of the preferential tariff treaty as applied by Argentina”. Without mentioning it directly, the statement also takes a hard-line against the recent re-nationalisation of Yacimientos Petrolíferos Fiscales (YPF), saying “Mexico is an example of this [a country that promotes free trade] and, unlike Argentina, fully honours its commercial agreements and international commitments”, adding that Argentina’s “macroeconomic and structural” policies “have led, by design to a deterioration in its current account” and the country’s international competitiveness.

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