Argentina slaps tariffs on capital goods

Argentina slapped new tariffs on capital goods imports on Wednesday as President Cristina Fernandez works to shore up slowing local industry with protectionist measures that are irking some key trade partners. Center-left Fernandez has imposed tough and sometimes unorthodox controls on imported goods this year in a bid to keep local factories open and save jobs in Latin America's third-biggest economy.
Such measures prompted the European Union to file a suit against Argentina with the World Trade Organisation (WTO) last month. Fernandez said companies that imported capital goods instead of buying Argentine-made products would have to pay a new 14 percent tariff. Tariffs on imported capital goods that cannot be substituted with Argentine products will be set at 2 percent. "Both these measures are aimed at neutralising unfair competition stemming from the over-supply of capital goods coming from euro zone countries, where economic activity levels are getting worse and worse," Fernandez said in a speech.