I’ve never really understood what actually happens when a country recalls an ambassador for consultations.
Say, for example, that Argentina gets into a snit over something that happens in America. The Argentinian government announces that it’s recalling its ambassador for consultations. What actually happens here? The ambassador travels back to his/her home country for an undetermined amount of time, and does what? In the diplomatic world, would this be considered a loss of face for America?
Using the same scenario, how would Argentina recalling its ambassador different than its Foreign Ministry having the American ambassador come in for a blunt talking-to?
The ambassador do travel back to his home country, probably not doing anything particular once there (consultations could take place, but they could take place almost as easily without the ambassador moving, or if necessary, he could travel back home without a formal recall). Recalling the ambassador is a formal way of protest, more serious than summoning the ambassador of the country you’re pissed at for a stern talking to and less serious than suspending diplomatic relations. With modern means of communication, it has few practical consequences or utility, but it’s still indicative of a serious strain in relationships and used with parcimony.
In the situation you describe, it wouldn’t mean a loss of face for the USA, just that Argentina is taking very very seriously whatever issue she has with the USA.
The implication of recalling an ambassador is more or less, in dating terms: “I don’t even know what we can discuss right now. Maybe I’m just not that into you. Let’s take a break from this relationship and talk again when you’re being less of a bastard.”