May 22, 2013
YPF: European parliament calls for trade sanctions against Argentina
The European parliament ‘deplored’ the government decision to expropriate 51% of the shares in the YPF hydrocarbons corporation - which is majority-owned by Spanish energy company Repsol- and called for the suspension of Argentina's tariff concessions under Europe's so-called generalised system of preferences (GSP).
In a resolution, the House also urges Argentina to "return to the path of dialogue and negotiation.
The document points out that Argentina's "unilateral and arbitrary" decision represents an attack on the exercise of the free enterprise and the principle of legal certainty, "thus causing the investment environment for EU businesses in Argentina to deteriorate".
The parliament expressed its deep concerns regarding the situation, as it represents the "non-fulfilment of obligations under international agreements", and warned that it may have negative effects such as international disinvestment and adverse consequences for Argentina in the international community.
Furthermore, the MEPs noted that this decision affects only one company in the sector (the Spanish energy firm Repsol) and only part of its shares, "which could be considered discriminatory", they say.
The European Parliament also alerted the Argentine decision could be detrimental to the block’s relation with the Mercosur by “putting a strain on the climate of understanding and friendship needed agreements."