NEW PROTECTIONIST NON-TARIFF BARRIERS TARGET

UNCLAS SECTION 01 OF 02 BUENOS AIRES 001628 SIPDIS SIPDIS EB/TPP/BTA/EWH FOR BETH LAMPRON WHA FOR WHA/BSC AND WHA/EPSC PASS NSC FOR MICHAEL SMART PASS FED BOARD OF GOVERNORS FOR PATRICE ROBITAILLE PASS USTR FOR KATHERINE DUCKWORTH AND MARY SULLIVAN TREASURY FOR ROSELLEN ALBANO USDOC FOR 4322/ITA/MAC/OLAC/PEACHER US SOUTHCOM FOR POLAD E.O. 12958: N/A TAGS: ECON ETRD EINV AR SUBJECT: NEW PROTECTIONIST NON-TARIFF BARRIERS TARGET CHINA, WOO DOMESTIC INDUSTRIAL SUPPORT REF: A. BUENOS AIRES 1496 ¶B. BUENOS AIRES 1445 BUENOS AIR 00001628 001.2 OF 002 ///////////////////////////////////////////// //////////// ZFR ZFR ZFR ZFR ///////////////////////////////////////////// //////////// ZFR IMI ZFR ABOVE BUENOS AIRES 1628 AND BLANK ASSOCIATED MCN. REPLACEMENT CABLE HAS BEEN SENT. RGDS. ///////////////////////////////////////////// //////////// ZFR ZFR ZFR ZFR ///////////////////////////////////////////// //////////// BUENOS AIR 00001628 002 OF 002 From his first days in office, Peirano has expressed his conviction that promoting and sheltering the growth of a deep and diverse industrial base is fundamental to improving Argentina's terms of trade. This package of new and as-yet poorly-defined non-tariff barriers speaks to Peirano's protectionist philosophy and to growing domestic concern over the surge in Chinese imports (which, in this era of Chinese prowess in the export of consumer goods, follows ineluctably from the GoA's consumption-led economic recovery strategy). This step also reflects domestic industry's share of the pre-election pinata after the GoA's recent announcement of cuts in consumer income tax liabilities and an increase in pension payments. WAYNE