BRUSSELS, May 25: The European Union launched a challenge at the World Trade Organisation on Friday against Argentinean restrictions on imports, escalating a trade war triggered when Buenos Aires seized Spanish oil assets.

“Argentina's import restrictions violate international trade rules and must be removed,” said EU Trade Commissioner Karel De Gucht, inviting other global rivals to join his battle against a “protectionist import regime (that is) ...clearly getting worse.”

De Gucht told a Brussels news conference that 19 other un-named international trading partners had “expressed concern.”

“This is not a spat between Europe and one of its trade partners,” he said.

“Europe is not a lone voice, Europe is not the only one complaining.” He said it was “time to call a halt” to protectionism, adding: “In this spirit... we would welcome any of our trade partners joining our action in the coming days and weeks.”

He said the restrictions were there simply “to try and prop up the Argentine economy at the expense of Europe and other economies in the global trade family.”

The EU exports more than 11 billion euros' ($13.8 billion) worth of goods and services to Argentina each year, importing a similar amount in return, but complained that “Argentina's restrictive measures are extending to more and more sectors.”

Announcing the move, De Gucht highlighted procedures to obtain an import licence as well as an obligation on companies to balance imports with exports.

De Gucht said the trend began in 2005 with restrictions on cars, household appliances, laptops and mobile phones, but that in February this year, “Argentina tightened the screws” by subjecting “all products” to a non-written “illegal” accreditation regime.

In terms of trade volumes, he said this meant about 16 times more trade was affected, a decision that had “cost jobs” in European companies.

Brussels is initially seeking direct talks with Buenos Aires and has 60 days under WTO case rules in which to try and resolve the dispute.

Thereafter, the WTO would usually be asked to rule on the legality of Argentina's actions. Such cases invariably take years.

De Gucht was at pains to dissociate the import restrictions from the decision by Argentina earlier this month to formally nationalise YPF, majority owned by Spanish energy giant Repsol.

He underlined that the EU has “no direct relation of a legal order” with Argentina in this instance, that Spain was the aggrieved party.

Spanish Prime Minister Mariano Rajoy said the seizure would trigger a “tremendous” loss in international investor confidence in the country.

YPF accounts for 34 per cent of Argentina's domestic oil production, 25 per cent of domestic gas production and 54 per cent of domestic refining, according to the Argentine Oil Institute.—AFP