Reminiscent of its former policies aimed at the Falkland Islands, Argentina is now seeking to shutdown the fishing industry of the islands. The industry is nearly worth 45 million British pounds each year and its main catch would be the Illex squid.

The squid starts as hatchlings right outside the River Plate, which is the border between Uruguay and Argentina. They move southwards in September and this movement is where they are harvested by ships to return to the Falklands.

In response, British Foreign Secretary William Hague has issued a warning to South American nations not to collude with the ban imposed by Argentina against ships from the Falklands to dock at their country's ports.

For nearly two centuries, Britain has held sovereignty over the Falklands that is located 290 miles east of Argentina. This is disputed by Argentina, as they also claim sovereignty. These two countries clashed in 1982 and now with the increasing economic opportunities near the area has renewed nationalistic claims over the territory.

Argentina was able to persuade Brazil, Uruguay and Chile to enter into a Mercosur trade group resolution to turn away ships flying the Falkland Islands flag. The flag is a sheep and a ship alongside the Union Jack. This resolution has been called illegal by the British government and has launched its own campaign against what it describes as an attempt "to intimidate innocent civilian population through economic pressure."

Hague added that the United Kingdom has had productive and honest discussions with Uruguay, Chile and Brazil, saying "All three countries have said that they have no intention of participating in an economic blockade of the Falkland Islands and that all Falklands-related commercial shipping will continue to enjoy access to their ports, in accordance with domestic and international law, if they are flying the Red Ensign or another national flag when docked."

In response, the Argentinian foreign ministry reconfirmed with their South American counterparts of their commitment to refuse ships to dock when they fly "the illegal flag of the Malvinas Islands". Malvinas Islands is the Argentinian name for the Falklands Islands. The ministry announced, "All confirmed that their governments have not modified their position."

The position was signed by the presidents of the respective countries stating that ships flying the Falklands flag should not dock in Mercosur ports and they should not be accepted in another Mercosur port. The agreement further states "all measures that can be put in place to impede the entry to its ports of ships that fly the illegal flag of the Malvinas Islands."