Europe
UK to shield Falklands-linked businesses from Argentine measures under trading-interests law
London says it is preparing Protection of Trading Interests measures so that UK firms are not forced to follow Argentine rules aimed at Falklands activity, with the aim of having them in force by the end of the year.
The British government says it will shield businesses that invest in the Falkland Islands from Argentine domestic measures aimed at companies and individuals involved in lawful economic activity there. The announcement, published by the Foreign, Commonwealth and Development Office on 13 October, comes as the dispute over oil development near the islands moves into international legal proceedings.
What London says it will do
According to the UK government, ministers are preparing measures under the Protection of Trading Interests (PTI) legislation. Its notes to editors describe the law as preventing UK persons from complying with specific extraterritorial sanctions measures. The government says the new measures will target only Argentine extraterritorial measures affecting the Falkland Islands, and that their purpose is not to restrict lawful trade between UK companies and Argentina but to stop firms being compelled to follow rules aimed at Falklands-linked activity.
Secondary legislation will be brought forward “as quickly as possible”, the notes say, with the aim of having it in force before the end of the year. The government adds that it is engaging closely with affected businesses and will “continue to consider all available options”.
Statements by ministers
Foreign Secretary Ed Miliband called Argentina’s attempts to intimidate businesses and individuals engaged in legitimate commercial activity “unacceptable”. Business and Trade Secretary Jonathan Reynolds said the government “will act where Argentina seeks to impede lawful UK commercial activity”. The release also reaffirms UK support for the Falkland Islanders’ right to self-determination and economic development, and says decisions on economic development in the islands are matters for the Falkland Islands Government and the companies involved.
The release does not name the Argentine measures, the companies concerned or any specific project. It presents the position of the UK government only; no Argentine response is included in it.
Context
The step follows Argentina’s request to the International Tribunal for the Law of the Sea for provisional measures over the Sea Lion oil project, covered in our earlier report: Argentina asks maritime tribunal to order UK to halt Falklands Sea Lion oil project. Argentina claims sovereignty over the islands, which it calls the Malvinas, while the UK says the islanders have the right to decide their own future.
