Argentine exporters are concerned about a little-known provision, section 122, that has now gained attention due to its implications on tariffs imposed by the U.S.
The article discusses the implications of section 122 of the 1974 Trade Act in the context of recent tariff changes imposed by the U.S. government. Following a court ruling that annulled most of the tariffs imposed by former President Trump, President Biden has instituted a global 10% tariff that may increase to 15%, leveraging the authority granted by section 122. This provision, which many Argentine exporters were previously unaware of, is particularly relevant as it provides the U.S. President with the authority to implement tariffs without needing Congressional approval, posing a potential risk to Argentine exports.
The core concern is whether the new tariff measures would hinder the existing trade agreement between the U.S. and Argentina, which aims to eliminate reciprocal tariffs on 1,675 products. While the U.S. perceives Argentina as a partner of minimal macroeconomic impact, the imposition of section 122 tariffs could reverse the progress achieved in trade negotiations and put pressure on Argentine exporters who rely heavily on the U.S. market.
Overall, the situation is indicative of the complexities of international trade and the significant disruptions that regulatory changes can trigger. The Argentine business community is left in a state of uncertainty as they await clarity on the potential effects of section 122 on their export operations and any developments regarding the U.S.-Argentina trade agreement.
