ARGENTINA: Reactions to government suggestion that companies cut down on UK imports in Falklands row

Record ID: 446842

  • Title: ARGENTINA: Reactions to government suggestion that companies cut down on UK imports in Falklands row
  • Date: 1st March 2012
  • Summary: BUENOS AIRES, ARGENTINA (FEBRUARY 29, 2012) (REUTERS) VARIOUS OF MARCELO ELIZONDO, ANALYST FOR INTERNATIONAL BUSINESS DEVELOPMENT, WORKING (SOUNDBITE) (Spanish) MARCELO ELIZONDO, ANALYST FOR INTERNATIONAL BUSINESS DEVELOPMENT, SAYING: "Some of the products the companies import can be substituted, but a lot of others can't. The UK is a country that produces expensive goods. The pound is high value currency. Production costs are high, which means Argentine companies that import products from the UK don't do it because they are cheaper, but because they have a high standard of quality. And that means some of them are hard to substitute. There are some products that can replaced, products that can be bought in Germany and Holland, but most of the British products -- for example electronics and chemicals -- are not easily substituted."
  • Embargoed: 16th March 2012 12:00
  • Keywords:
  • Location: Argentina, Argentina
  • Country: Argentina
  • Topics: International Relations,Politics
  • Reuters ID: LVA4RMWL2NJP58QJOWMZGCJZPW1N
  • Story Text: Argentina's reacted on Wednesday (February 29) a day after the industry minister urged company executives to stop importing British goods, further straining ties as the 30th anniversary of the Falklands war approaches.
    The two sides fought a 10-week war in 1982 after Argentina invaded the South Atlantic archipelago. London has refused to start talks demanded by Buenos Aires on the islands' sovereignty unless the 3,000 Falklands residents call for them, which they show no signs of doing.
    Argentina soy producer Syngenta Agro, which buys pesticides from the UK, and Argentine pharmaceutical Roemmers were among at least 20 businesses that got the call from Industry Ministry Debora Giorgi.
    Giorgi suggested companies replace British suppliers with those that respect Argentina's "sovereignty claims and resources," sources said on Tuesday.
    International market analyst Marcelo Elizondo said some high quality, speciality products won't be so easy to replace.
    "Some of the products the companies import can be substituted, but a lot of others can't. The UK is a country that produces expensive goods. The pound is high value currency. Production costs are high, which means Argentine companies that import products from the UK don't do it because they are cheaper, but because they have a high standard of quality. And that means some of them are hard to substitute. There are some products that can replaced, products that can be bought in Germany and Holland, but most of the British products -- for example electronics and chemicals -- are not easily substituted," Elizondo said.
    Oil exploration off the islands by British companies has raised the stakes in the decades-long territorial spat.
    Giorgi's remarks came a day after officials in Argentina's Tierra del Fuego province prohibited two British-linked cruise ships from docking over the Falklands dispute.
    However, Argentine Joana Travesaro said she wouldn't bat an eye at using products of British origin.
    "If there are medicines of English origin and they are the medicines I have to take, I will take them," she said.
    Ministry figures show that British imports jumped 40 percent to $614 million from January to November 2011, compared with the same period a year earlier.
    Argentina's trade surplus has been shrinking overall as consumer demand and high local inflation make foreign-made goods more appealing. Also, as the economy booms, local factories have imported more parts to expand production.
    And some people have more trust in goods made outside the country.
    "I think it's bad because sometimes the products made outside the country are of a lot better quality than the ones made here, most of all in pharmaceuticals and industrial things," said a woman named Karina.
    The UK foreign ministry has said they will appeal to the European Union on the import restrictions. Argentina's foreign ministry countered with a press release saying it would be a good chance for the two countries to discuss the sovereignty of the islands.
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2012. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register