U.S. DRAFTS SANCTIONS IN ARGENTINA SOY CASE
The U.S. is drafting options including
possible trade retaliation against Argentina in a dispute over
the differential between soybean and product  taxes which
Buenos Aires levies on exports.
    The drafting of retaliation options follows the failure
of high-level talks earlier this month to resolve a case filed
by the U.S. National Soybean Processors Association, U.S.
officials said. The NSPA charged that Argentina's differential
export taxes implicitly subsidize soyproduct exports in
competition with the U.S.
    "Our only option is some sort of retaliation to restrict
(Argentine) access to our market," said one U.S. source.
   
    The U.S. shelved the NSPA case earlier this year after
Trade Representative Clayton Yeutter said Argentina agreed to
end the differential.
    But when Argentina announced export taxes for the 1987/88
year in July, the differential was narrowed only one pct.
    Deputy trade representative Michael Smith met Agriculture
minister Ernesto Figuerras and Economy minister Juan Sourroille
on September 29 and the Argentine officials said they could not
narrow the differential further for 1987/88.
    As a result of the impasse, the U.S. is considering
restrictions on imports of items such as Argentine corned beef
and finished leather, the U.S. sources said.
    A decision on reprisals is likely to be made by the Reagan
administration soon, they said.
 Reuter
