MercoPress. South Atlantic News Agency
Argentina confident soy-oil dispute with China will be solved “in the short term”
Cesar Mayoral, Argentine ambassador in Beijing Argentine Ambassador to China, César Mayoral announced in Beijing that the soybean oil conflict with Beijing that has been ongoing since the beginning of the year “will be solved in the short term.”
Mayoral made the comment to Argentine reporters covering President Cristina Kirchner’s visit to China. A first meeting Tuesday between Mrs Kirchner and Chinese President Hu Jintao did not arrive, officially, to any feasible solution for the trade and commercial tensions between both countries.
China has frozen all Argentine soybean oil imports in retaliation for Buenos Aires decision to restrict imports of Chinese products. The Chinese blocking of Argentine soybean oil threatens a key hard currency earner for the South American nation, estimated at 2 billion US dollars for the current year.
Last year, Argentina, the world’s leading soy-oil producer, exported to China 1.84 million tons of soy-oil worth 1.4 billion USD.
Mayoral remarked that “the commercial ties between the two nations is going Ok”, and added, “The president's visit prove that China is a privileged partner for our country capable of supplying us with all kind of products.”
At the end of the press round, Mayoral also wanted to remember that China has always shown its support to the Argentine international claim for the sovereignty of the Malvinas Islands.
Earlier in the day President Cristina Kirchner stated she was “satisfied with everything she had accomplished in China so far”, and remarked that in every meeting she had maintained with Chinese government officials (including President Hu Jintao), they had all “become aware” of Argentina's importance, “not only as a market but as a platform for Latin America and the world.”
Before leaving for the World Fair in Shanghai, Mrs. Kirchner described her trip so far as “more than good,” since it had brought “excellent results.”
“This makes me very happy,” she expressed before leaving for China’s financial and economic capital, where she assured her schedule will be “very intense and fruitful”.
As a result of the visit China also agreed to participate in helping upgrade Argentina’s railway system and Buenos Aires underground network. Contracts totalling 10 billion US dollars were announced most of which could be financed by China.
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Read all commentsSo the Argentines are going to tell the world that the problem can't be solved, are they? Not.
Jul 15th, 2010 - 09:01 am 0Chinese action was based, as the article says, on Argentine restrictions on Chinese products. And Argentina has just lumped 38% ant-dumping duty on Brazilian gas compressors.
The fact is that Argentina is performing a balancing act because it has to have positive performance with its budget and a positive trade balance. It can't keep it up for long without annoying its trade partners, like China, Brazil and the EU. Sooner or later it will slip. The question then is: does it do a headfirst dive into the ground or does it land astride the wire. Neither will be painless.
“Contracts totalling 10 billion US dollars were announced most of which could be financed by China”
Jul 15th, 2010 - 10:04 am 0Does China not know Argentina has a quite recent record of not paying back its creditors? And Argentina today also has the second highest inflation rate in South America. Uh oh!
If I remember correctly, 2 or 3 years ago, after a visit to Argentina by Chinese officials, CK announced that China would be providing 20 billion dollars for business in Argentina. Everyone is still waiting for the first dollar to arrive. Announcements with no further action is typical of the K´s.
Jul 15th, 2010 - 02:34 pm 0Commenting for this story is now closed.
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