U.S. DRAFTS SANCTIONS IN ARGENTINA SOY CASE
  The U.S. is drafting options including
  possible trade retaliation against Argentina in a dispute over
  the differential between soybean and product  taxes which
  Buenos Aires levies on exports.
      The drafting of retaliation options follows the failure
  of high-level talks earlier this month to resolve a case filed
  by the U.S. National Soybean Processors Association, U.S.
  officials said. The NSPA charged that Argentina's differential
  export taxes implicitly subsidize soyproduct exports in
  competition with the U.S.
      "Our only option is some sort of retaliation to restrict
  (Argentine) access to our market," said one U.S. source.
     
      The U.S. shelved the NSPA case earlier this year after
  Trade Representative Clayton Yeutter said Argentina agreed to
  end the differential.
      But when Argentina announced export taxes for the 1987/88
  year in July, the differential was narrowed only one pct.
      Deputy trade representative Michael Smith met Agriculture
  minister Ernesto Figuerras and Economy minister Juan Sourroille
  on September 29 and the Argentine officials said they could not
  narrow the differential further for 1987/88.
      As a result of the impasse, the U.S. is considering
  restrictions on imports of items such as Argentine corned beef
  and finished leather, the U.S. sources said.
      A decision on reprisals is likely to be made by the Reagan
  administration soon, they said.
  

