President Fernandez wants to nationalise a large part of Argentina's biggest oil company
William Hague has hit out at Argentina after the government said it was seizing a Spanish-controlled energy firm.
The foreign secretary warned that the move by controversial president Cristina Fernandez was part of a wider protectionist agenda.
Ms Fernandez has said she will nationalise a large part of YPF, the country's biggest oil company. Spain's Repsol would see its stake reduced from 57% to 6% as a result, potentially losing billions of dollars.
The announcement - part of Argentina's efforts to curb fuel price hikes - has drawn a furious response from Madrid, which has threatened trade and diplomatic reprisals.
Mr Hague said he was "very concerned" by the developments.
"This is the latest in a series of trade and investment related actions taken by Argentina which are damaging to business interests and will undermine Argentina's economy by reducing its attractiveness to international investors," he said.
"The Argentine government has made no secret of the fact that it wishes to reduce imports and boost its domestic trade surplus through a variety of restrictive trade measures.
"This goes against all the commitments Argentina has made in the G20 to promote transparency and reduce protectionism.
"We will work with Spain and our EU partners to ensure the Argentine authorities uphold their international commitments and obligations."
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William Hague has hit out at Argentina after the government said it was seizing a Spanish-controlled energy firm.
The foreign secretary warned that the move by controversial president Cristina Fern...
William Hague has hit out at Argentina after the government said it was seizing a Spanish-controlled energy firm.
The foreign secretary warned that the move by controversial president Cristina Fern...
She gets leftist votes because it is anti-international capitalist.
She gets rightist votes because local capitalists not competing against foreign investors.
Her government increases revenue.
She gains reputation as a nationalist in Latin America.
This the the way populism works. She wins all ways. Your remark has no relevance to her situation.
Remember UK oil industry. Forty years in private sector and we do not even have refinery capacity for domestic needs. We have not downstream petrochemicals industry of any significance. We are a primary producer like a third world country. That is what the private sector got us while Saudi Arabia took 15% of world petrochemicals market with government led joint ventures using skilled workers from Britain made redundant by failure of private sector to invest.
eric14: She gets leftist votes because it is anti-international capitalist. She
If it had been a British company's assetts seized Hague would have rung his hands and done nothing, except maybe send a stiff note to the Argentine Ambassador. At least Spain has balls and will punish Argentina.
TheGreatLeader: If it had been a British company's assetts seized Hague
For once (possibly in a lifetime !) I agree with Argentina, now Haig please Re-Nationlise, our Electricity and Gas Suppliers quickly. And with no compensation...to save plunging us deeper into Debt. thankyou.
rayjsj55: For once (possibly in a lifetime !) I agree with
William Hague Attacks Argentina Over Protectionism? Are you allowing others to do business in Iraq, Libiya, Afghanistan and in Africa? No because to control their resources you went there, made falls claim of nuke, got rid of ruling party, armed opposition mafia, promise them wealth and education in Europe for their kids and now only your comapnies could do business. This is call day light robbery and looting so now Argentina doing it and world know so why putting your dirty hands in French business.
godchild: William Hague Attacks Argentina Over Protectionism? Are you allowing others
Motivation to do this is quite rational: curb fuel price hikes.
Now let me think how might we learn from this?
Energy! An industry that operates as a cartel, holds the British public to ransom by setting cost and price while the consumer plays charades in switching between suppliers.
I am sure Ms Fernandez would just take back the assets into public ownership.
Kyloer: Motivation to do this is quite rational: curb fuel price
The Argentine Civil Service has a fantastic track record of running the country what with the economic collapse in 1998 which last until 2002 because they didn't bother pursuing free-market principles.
You think that allowing people who don't understand basic market principles, free trader agreements and G20 resolutions will actually help their economy, when they ruin the company they nationalise which way do you think fuel prices will go?
tomthepom: The Argentine Civil Service has a fantastic track record of
We would be wise to learn from what happened historically in Argentina. Worryingly the early signs of their crisis parallel what we are confronting in Britain today.
I have no problem eith free market principle... my problem (and perhaps Ms Fernanadez too) is where that market is a pretence and prices "fixed" by those operating within it.
Kyloer: We would be wise to learn from what happened historically
Argentina has made no secret of wishing to reduce imports. A bit of that attitude would not go astray in this country. It is not the business of William Hague how they wish to sort their economic situation inside their shores. Pay attention to the economic affairs of the UK instead of monitoring other countries.
roseandpeony: Argentina has made no secret of wishing to reduce imports.
They have to reduce imports, because after their bankruptcy they cannot borrow on international markets. Probably a good thing, borrowing to fund ever increasing imports is not a healthy situation.
It is time that the UN started to make themselves useful i.e. studying and issuing guidelines on resources extraction. It has been a very longstanding conflict how much the local population is entitled to for resources extraction. Iran under the Shah (Mossadegh), Australia has miners who think they are entitled to everything, Bogainville in PNG, Russia, and now Argentina - it always revolves around the local population being/feeling overruled and shortchanged. Argentina is part of the Bank of the South and what Britain or Spain think or do is very unlikely to affect the matter.
My family's property was taken away by the West (not East) German government without compensation to benefit a private company and CDU party coffers. It seems to me that at least Kirchner's nationalisation might be of benefit to people who deserve having a stake in the riches of their country unlike in my case fattening up the Colluding Class.
novelist2000: They have to reduce imports, because after their bankruptcy they
First Galtieri and now Kirchner - why do Argentinians like to be on the losing side of major battles that wouldn't have started but for their own stupidity?
stevesheff: First Galtieri and now Kirchner - why do Argentinians like
This is simply the difference between a nation (ours) which has completely bowed to the free market economy, (giving foreign investors cash investments to buy and strip assets in this country, maximise profits with no control and run when the going gets tough) and a nation (theirs) which is protecting its resources and exerting some control over foreign exploitation.
It has nothing to do with the "Brits" and the "Argies" - simply a difference in political dogma - after all, we have voted for the free market economy over many elections now - when will we learn that it makes the rich richer and the poor poorer?
buchanallan: This is simply the difference between a nation (ours) which
That makes sense but, didn't they also sign up to the G20 accord? It seems to me all capitalist countries follow each other like sheep. Hence the huge debt and financial crisis that has hit the west. I would personally prefer to have more control over companies operating here in UK.
Up_the_wall: That makes sense but, didn't they also sign up to
We did sign to the G20 Accord, which affects freedom of trade and freedom of the financial sector amongst involved nations to protect their currencies, rather than foreign investment. Most signatory countries still retain some (or total) control over foreign companies moving in. For example, if I was to try to start a company in Japan or even what most people would see as a developing nation such as Indonesia - both G20 signatories, I would have many more hoops to jump through to ensure I had enough financial backup to start and run my business. I would have to show in my business plan, and at regular reviews, that my business was helping the economy and that I had enough protection for my workers, otherwise I would not be allowed to start up or continue running my business (which would go back to the nation involved). It is our economy of exploitation which is wrong - where foreign investors can exploit the British economy and, likewise, British investors can exploit foreign economies. But, I suppose this has always been the British way - it is how our rich became richer during the time of the Empire.
buchanallan: We did sign to the G20 Accord, which affects freedom
Good as far as it goes, but try to exert too much control over companies operating here and they will simply move somewhere else creating more unemployment.
John_Peel: Good as far as it goes, but try to exert
But Argentina, like most nations, has a lot to gain from bringing in companies, with their skilled workers and ability to call on the best technical resources. It will raise the skill levels not just of those individuals lucky enough to be working on the rigs and wells, but also the many thousands of workers employed in related industries. There would also be funding for new training courses in coleges because there would be a new demand for skilled workers. Local universities would create new courses and research centres to satisfy the demand for research - a pool of skilled labour would make it unnecessary to bring in skilled workers from outside.
There would be an enormous transfer of skills to the Argentine population and many of these skills, once acquired, would be relevant to a much wider range of indigenous industries.
Nissan in Sunderland has a Japanese manager and provides jobs for over 6,000 British workers. Do you think they would invest Argentina? The second word is ..'off'' !
stevesheff: But Argentina, like most nations, has a lot to gain
Nissan may well be providing 6000 jobs for British people (which is a great thing), but you can be sure that once the factory is paid off, any profits will be going straight back to Japan and not invested in the UK.
buchanallan: Nissan may well be providing 6000 jobs for British people
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PA | Posted: 17/04/2012 21:08 Updated: 18/04/2012 13:34