Argentina protests Chinese sanitary restrictions on soy-oil imports
Argentina formally protested on Monday a possible move by China to block imports of Argentine soybean oil in a trade row that threatens a key export of the country and last year involved almost 1.5 billion US dollars.
Argentine Foreign Minister Jorge Taiana summoned China's ambassador in Buenos Aires Gang Zeng to discuss the potential Chinese measure. According to Argentine diplomatic sources China “is willing to hold contacts that can help find a solution to the problem”.
Last year, Argentina, the world's leading soy-oil seller, exported to China 1.84 million tons of soy-oil worth 1.4 billion USD and a prolonged conflict could end up benefiting US or Brazilian soy oil exports, analysts said.
The Argentine response came after Chinese companies were called to an emergency meeting last week in Beijing and urged not to buy Argentine soy oil in retaliation for the country's decision to restrict imports of Chinese products, including shoes and steel pipes.
As the global economic crisis grew in late 2008 and early 2009, Argentina restricted Chinese imports to shield its industries from import competition.
A trade body under China's Ministry of Commerce told traders to cancel soy oil cargoes from Argentina because Chinese authorities planned to raise standards on the imports to levels which Argentina currently does not meet.
The disposition of the Chinese sanitary authorities established a maximum of 100 parts per million of hexane-solvent residues used in the extraction of oilseed oils in the shipments of crude soy oil.
Chicago, US soy oil futures were up in Monday afternoon trade, getting support from the trade spat although several US traders said they did not expect the row to drag on.
However, some analysts said the conflict might mean export business shifted to other leading producers such as Brazil and the United States.
”If it went on long enough, it probably would (benefit US soy oil exports) because Argentina is by far the largest exporter of soybean oil in the world and China is by far the largest importer. But that combination tells me that this situation might not last very long,“ said Anne Frick, oilseeds analyst with Prudential Bache Commodities.
”If it were to continue, it would probably benefit US soybean oil exports and possibly Brazilian exports as well,“ she said.
Soybean and soy derivative exports are a pillar of Argentina's economy and the government could lose some 600 million USD in tax revenue this year if Chinese soy oil exports are suspended, according to analysts.
Last Saturday, Argentine Industry and Tourism Minister Débora Giorgi reiterated that Argentina, through its external commerce policy, defends national production from disloyal competition, and highlighted that Argentina did not restrict imports from any country, including China.
Giorgi added that regardless of the international crisis and the decrease in world commerce, the Argentine deficit with China grew.
”Our measures look to avoid disloyal competition, which grew in consequence to the international crisis and the surplus of stock of products from last year, but we didn't prohibit Chinese imports, which continue coming in to our country in the form of healthy competition,” said Giorgi in a communiqué.
The Argentine Government says that the restriction -assuming it comes into force- would not last long, since more than 50% of soy oil imports to China come from the South American country and replacing this volume would not be easy.
Although the measure created some alarm, Argentine businessmen trust a solution will soon be found. Argentine Industrial Union (UIA) lobby Secretary, José Ignacio de Mendiguren, said he was very positive about a possible accord between the governments of Argentina and China over the conflict.
De Mendiguren downplayed the whole situation as he considered that “it's just a matter of trade negotiations between the two nations”.
The lobbyist also remarked that “China's development without the alimentary security that South American products bring to them is not possible or viable as only ten percent of China's soil is cultivable.”
De Mendiguren also believes that “being China the country that will dispute the US hegemony within the next decade, they will necessarily need Brazilian steel, Argentine soy, and South American oil and energy”.
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Perhaps Jorge Tainia should have kept his eye on the ball instead of being distracted by the pitifully small issue of an oil rig well within international law(or more likely using it as a distraction), when the country seems to have engaged itself in a minor trade war in which Argentina stands to lose alot.
Call me tad traditionalist but it appears that Argentina has been caught of guard? Is the Falklands so great an foreign policy issue that it causes the government to neglect other issues?
“Beijing urged not to buy Argentine soy oil in retaliation for the country's decision to restrict imports of Chinese products, including shoes and steel pipes”
Oh dear I thought these were the same Chinese who many of the Malvinist Parrots said would come running up to Argentina with their knickers in their handbag, being offering the finest riches in the indus in return for their unfettered support over this most high agenda of issues for La-Parrot-Tree.
Argentina is a young nation, sadly with the likes of the Jerkners in charge, it's going to learn the hard way that China is a tough bed fellow and makes sure it gets what it wants and gives very little in return.
Maybe the world should put an end to extremely slow chinnese products made by slaves of XX! century.
Nothing to do with other issues like Malvinas. Countries have many issues to look at. Only ignorants could always relate them!
Make no mistake Jorge this is a major problem for Argentina and continues to display the pathetic way your leadership manage the Argentine economy. Perhaps Christina and her cronies should have spent most of their time on dealing with real issues that directly affect Argentines rather than deflecting their own incompetance by shouting about the Islands.
You are right, this is business and Argentina is clearly not very good at it. Perhaps your opposition could do a better job. They have already visited the UK Foreign Office to see how Argentina could benefit from a potential future oil industry in the Falkland Islands, this is business after all.
As I said to you in the other article, If we ban UK products, surely France or Germany would be very glad to suply us with theirs.
I will repeat it again since you seem no to understand. IT IS ALL ABOUT BUSINESS!!!!!
Argentine is far the main producer of soy-oil. We could change its international prize if we wanted to.
When our government lost the battle against soy producers in the congress, the soy's world price decreased inmediatly in USA. Just for you to know since you and your country are not much into soy issues.
........“Make no mistake Jorge this is a major problem for Argentina and continues to display the pathetic way your leadership manage the Argentine economy. Perhaps Christina and her cronies should have spent most of their time on dealing with real issues that directly affect Argentines rather than deflecting their own incompetance by shouting about the Islands.”.......
- Sorry man, but you have to get your facts right. Argentina is one of the few countries that dealt very well with the world economic downturn thanks precisely to the way we manage our economy. While countries like Greece, Spain and Portugal are suspected may default their debts, Argentina is about to pay all the defaulted debt that remeined from 2001, again thanks to the way we managed our economy increasing as never before our internetional reserves. May be you don't know, but in 2003 we paid off all our debt with IMF, we had reserves to do that. The upshot of that is we liberated ourself from that evil organization called IMF.
- Are you good at it???? I mean, given the fact that you have right now an unpayable debt and a monumental deficit as never before!
We know now who those law-makers are. They visited the foreign office of your country and they didn't do it publicly. Thanks to tecnology, we found out how many of them were there, who they were and which party they belonged to. One of them stack the tonge in twitter, lol, now I can assure you they won't be voted in future, I can bet on that.
Very nice of your embassy by inviting opposition's law-makers. Perhaps ours in London should do the same.
- OMG!!! How hypocritical!!!. Did EU lift the subsides to agricultural goods?????
You always ask for us to lift barriers and subsides in Doha meetings, but refuse to do it with comodities that we export.
Again, how hypocritical!!!!
As the biggest exporter of soy-oil then falling foul of the what is the world's largest importer is a concern and an embarassment for Christina and the cronies. Argentina will only mangae to repay the defaulted debt if it has a good enough uptake of the newly issued bonds and the terms are not desirable from what would be considerd a sub-prime lender with a B- rating.
Aparently there are Argentine politicians who are prepared to be less jingoistic and make wise descisions. The members of your opposition who visited the UK Foreign Office appear to have their business brains in the right place. Imagine how much your country would benefit if raw crude from the Islands was refined in Argentina. Both parties had an agreement, it was the Argentina leadership that walked away and may now be left to rue that descision, but it will be the average Argentine who will lose out, unfortunate.
- It doesn't seem so since you can't differenciate political issues from business.
.....“As the biggest exporter of soy-oil then falling foul of the what is the world's largest importer is a concern and an embarassment for Christina and the cronies. Argentina will only mangae to repay the defaulted debt if it has a good enough uptake of the newly issued bonds and the terms are not desirable from what would be considerd a sub-prime lender with a B- rating.”.....
- There is a political problem in Argentina about bonds. When the government said it will pay the defaulted debt, bonds increased their value, but member of the opposition partys (those whom you praise) did everything to stop it provoking bonds to fall in its value.
Next days will be interesting about this issue. Government is close to win in justice about bonds. May be it will appear on The Economist or Financial Times for you to read.
.....“Aparently there are Argentine politicians who are prepared to be less jingoistic and make wise descisions. The members of your opposition who visited the UK Foreign Office appear to have their business brains in the right place. Imagine how much your country would benefit if raw crude from the Islands was refined in Argentina. Both parties had an agreement, it was the Argentina leadership that walked away and may now be left to rue that descision, but it will be the average Argentine who will lose out, unfortunate.”.....
- How much beef??? Since you are such an expert, you could answer. Really, how much??? Malvinas is not Venezuela. Is that the way you make lobby to increase the price of your shares in Rockhopper Exploration???
How on earth the size of argentine economy could be beneficiated from anything that happens in the islands???
We don't want Malvinas due to oil, fisheries or any kind of profitable activity.
You fail to understand our claim.
BTW it is impossible to separate bussiness and political issues, Business is by nature political, they are not dicotomous.
The reason I don't understand your claim is that you don't have one. The Falkland Islands are used as a political tool to bolster support. If your leadership felt thay had a legal basis they would take the mater to the ICJ but by doing so would expose their argument and then never be able to use it as a political aid when the approval ratings drop.
All that your leadership has attempted to do to threaten the Islanders has been ineffective and will continue to be ineffective. Collaboration and not confrontation is the only sensible solution which will result in adding some further diversification of the Argentine regional economies.
You have indicated that all is fair in business; In that case perhaps Brazil, Uruguay or Chile wouldn't mind getting in on the refining action should a commerical hydrocarbon industry evolve in the Falkland Islands. That will identify what substance there is to their paperless support.
Back at the Weekend.
- We have a ckaim, only a blind coul deny it. See UN resolutions. Argentina doesn't have the need nor the obligation to go to ICJ.
.....“All that your leadership has attempted to do to threaten the Islanders has been ineffective and will continue to be ineffective. Collaboration and not confrontation is the only sensible solution which will result in adding some further diversification of the Argentine regional economies.”.......
- Collaboration, difficult for it to succed when one side isn't collaborating for the dispute to end.
.......“You have indicated that all is fair in business; In that case perhaps Brazil, Uruguay or Chile wouldn't mind getting in on the refining action should a commerical hydrocarbon industry evolve in the Falkland Islands. That will identify what substance there is to their paperless support.”.......
- You are starting to understand, it is all about business. You should understand our legislation because there chilean companies in oil industry working here. If they make business with pirates in Malvinas, then they couldn't do it here, they would have to choose. So far, they are here, perhaps due to it is more profitable. ALL ABOUT BUSINESS!!!!!!
Good luck in Paris!!! ALL ABOT BUSINESS!!!
I know that I'm repeating others but jorgy boy is having some difficulty grasping the basics, so -
1. no, you don't have a claim
2. the UN does not recognise any claim by Argentina it merely recognises that there is a dispute over sovereignty
3. no you have no obligation to take your spurious case to the ICJ but no international credibility for your spurious claim if you don't....
4. collaboration involves a meeting of minds working towards the same objective but as the aims of Argentina and those of the Falkland Islanders run contrary to each other such is not possible.
That help at all ... ?
ARG has a B- rating, one of the lowest in the world ! There is nothing that will make it any better in the near future. Using the CB reserves was a huge mistake, there could very easily be a run on the peso and you won't ha any $ to protect it. The peso will be 4.25 to the US$ by NOV and it could be 6 by the end of next year. It's a mess and the solutions that exist are unpalatable to its arrogant population.
- Argentina paid trhee times its debt since 60's. Have you ever heard the term ”“deuda odiosa”“??? USA invented it. Read about it.
.....”All internal funding sources have dried up and if the new bond issue doesn't have a 60% take up rate ARG will be in a a world of hurt because you are out of options. It is not like Chavez can loan you any more money.“.....
- No. they will have to accept it. There is no chance other than accept it. Otherwise, they will not see a peny.
......”ARG has a B- rating, one of the lowest in the world ! There is nothing that will make it any better in the near future. Using the CB reserves was a huge mistake, there could very easily be a run on the peso and you won't ha any $ to protect it. The peso will be 4.25 to the US$ by NOV and it could be 6 by the end of next year. It's a mess and the solutions that exist are unpalatable to its arrogant population.”......
- LOL. We have here many fortune teller that have been saying so since 2003 and all the opposite have happened. You are incorrect. If you only knew the things that have been said!!!!!
The bondholders didn't accept the deal last time I am not sure what will happen this time. They are 2 very rich and politically connected families that hold most of the debt. Maybe they are tired maybe not but your Prez is desperate these next few weeks will be interesting.
The stolen $ is running out and an election is coming this should be interesting to watch.
- In our last debt restructure in 2006, 76 % of bondholders accepted to get only 25 % of the original value. The holdouts (25%) didn't see a peny.
Now we are negotiating with them and they know they won't be able to get more than 30 % of their original value and given the fact that the world is still in crisis and Argentina is one of the few countries willing to pay, they will have to accept.
......“Maybe they are tired maybe not but your Prez is desperate these next few weeks will be interesting.
The stolen $ is running out and an election is coming this should be interesting to watch.”.......
- Surely.
All the UN recognises is that a dispute over sovereignty exists. The UN is completely neutral on the matter. It does not recognise any Argentine claim, it does not give any “value” to either sides arguments, it simply requests that the two sides settle their differences - and the UN certainly does not say that the only solution is a transfer of the Falklands to Argentina!
No Jorge, as I explained above, the UN does not recognise your claim.
At least you finally admit that the UN does not recognise your sovereignty either. So much for that ridiculous “Malvinas... son.. Argentinas” saying which you sometimes repeat here. Hollow words...
You never understand, do you?
Las Malvinas fueron, son y serán Argentinas.
Volveremos!
Jorge also said: “stop sying me talib or jihad. what do I have to say for you to do it???? maybe to say “long life to IRA”???? Huh????”
Jorgebobo, what you get you completely deserve.
you just deserve........................
The UN also calls the two countries to negotiate the dispute, not the claim. The UN has never taken a position with regard to the claim.
www.facebook.com/photo.php?pid=3920313&o=all&op=1&view=all&subj=169363076972&aid=-1&id=735947307
- Are you so retard????
we have a dispute because we have a claim, if we didn't have it, then wouldn't be a dispute.
sily!!!!!!!!
You never understand, do you?”
They don't recognise your claim Jorge they only recognise that you have made a claim. Not the same thing.
Unbelievable I have to repeat this all the time.
How do you know, have you tried it?
Of course Jorgie boy has tried it.! They allways do.. Remember their claim to some islands in the Beagle Channel? Unfortunately the result was “depressing”!(It was the pope who told them, that their “legal” claim
was totally stupid). However ,they reluctantly followed the papal judgement, and since then ,they did not want to use international authorities (unless the were sure of a positive result!) That explains why the do not want to go to ICJ neither UN. Right Jorge or...?
P.S. Forgive spelling errors and simple writing. I am Scandinavian, sry.
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