Argentina files WTO complaint over Spanish biodiesel rules

GENEVA Aug 20 (Reuters) - Argentina has filed a complaint against the European Union, the World Trade Organization said on Monday, initiating the process of litigation to challenge Spanish rules that Argentina says discriminate against its exports of biodiesel.

The EU now has two months to settle the dispute in talks with Argentina or risk an escalation, since Argentina could ask the WTO to set up an adjudication panel after 60 days.

The dispute follows the launch of an EU complaint against Argentina's rules on imports, and signals a worsening of trade relations since Argentina decided to seize control of oil company YPF, a subsidiary of Spain's Repsol, in April. (Reporting by Tom Miles; Editing by Jon Hemming)