Recent weeks have witnessed a clear rise in tensions between the UK and Argentina over the Falkland Islands – almost 30 years after the countries fought a short but bloody war over the South Atlantic archipelago.
The latest war of words between the two countries began in December when Argentina persuaded the Mercosur group of countries, which includes Argentina, Brazil, Paraguay and Uruguay, to ban ships sailing under the Falkland Islands flag from using the ports of member nations.
In recent days, the UK Prime Minister David Cameron described Argentina as having a ‘colonialist’ attitude to the islands. The British Ministry of Defence meanwhile announced today that it would be sending HMS Dauntless, one of its most modern ships, to the area.
With no end to the Falklands dispute in sight, it is worth examining how further deterioration in the countries relationship may affect business and trade. (more…)