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.