World Trade Organisation’s legislation has started to be actively applied in Argentina. Procedures against Dumping actions have been specially numerous in the past twelve months.

Various factors have contributed to this development. The Asian and Brazilian crisis, an inclination of the Administration to look favourably on these kind of presentations and strong lobbying from industry representatives, were probably the most decisive.

As a result many anti-Dumping submissions have been made. Many are legitimate in the sense that they are expressing damage suffered by unfair trade. Others, on the other hand, are simply trying to achieve protection from foreign competition.

Dumping procedures are neither simple nor of short duration. Nevertheless there is a growing amount of companies who are disposed to follow this course. Presentations must be made by firms that represent a substantial participation of the local production.

Estudio Sur is particularly specialised in this field. Its consultants have been involved in many cases in past years, having had the opportunity to participate actively both in the public and private sectors.

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This instrument of foreign commerce is another of the legal procedures the World Trade Organisation accepts as way of achieving tariff protection when an industrial sector in unable to compete with foreign goods.

In this case there is no need to demonstrate that unfair trade (dumping) has taken place. A specific industrial sector must be able to prove that it has suffered severe damage as a consequence of growing imports.

This is also a complicated procedure which must be complied with carefully, fulfilling a very complete presentation regarding the sector’s economic situation together with a readjustment program that would enable it to compete adequately in the future.

Estudio Sur has been involved successfully in the only two Safeguard cases that have taken place in Argentina making it the only consulting firm in Argentina with direct experience in this field.

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As in Dumping and Safeguards, the activity of the National Commission for the Defence of Competition (this is the department in charge of the enforcement of this legislation) has multiplied as a result of the economy’s deregulation process that has taken place in Argentina in recent years.

During long periods of time, price controls and a closed economy, made the application of the Antitrust Law (22.262) rare, since it was the government’s own policies that generated, and in many cases, approved anti-competitive actions.

This has changed radically and there is an increasing awareness in authorities that since they implemented a policy in which adequate competition must regulate the economy, they cannot be indifferent to practices that interfere negatively with market forces.

Private sector is realising that Government is prepared to look into these situations and is therefore ready to make use of this legislation when the situation arises. On the other hand, companies are been much more cautious and wary of inadvertently infringing Antitrust regulations.

A new law has been recently enforced determining that mergers and acquisitions must be previously notified to authorities seeking approval. This requires careful presentations in which Estudio Sur has already been very active.

Estudio Sur has economists and lawyers with extensive experience in Antitrust legislation.

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