Protectionist policies of Argentina since 2003: from the boom to economic decline

Abstract

Argentina has been one of the very few WTO Members that since 2003 reversed its trade liberalization measures of the late 80s and 90s and reintroduced highly protectionist import policies while at the same time, heavily discriminating against major agricultural exports. These barriers have been administered discretionally violating: i) many multilateral trade rules, ii) the Mercosur principles and, iii) the country’s own Constitution. The paper summarizes the major trade discriminating policies and sides with those that attribute most of the ongoing recession to these policies. It also highlights the fact that it has taken most WTO Members twelve years
to decide that in fact Argentina has been violating its Agreements and the country’s obligations causing many of their industries costs in terms of lost exports. One important lesson emerges. Multilateral rules provide domestic gains to those Members whose governments concur with the significance of open trade policies administered transparently but they do not impede reversals of trade liberalization programs.