MercoPress. South Atlantic News Agency
“Discriminatory trade” measures could limit Chinese interest in Argentina
As China is gaining ever wider economic influence, Argentina runs the risk of losing the opportunity to benefit from the trend by keeping discriminatory measures against Chinese products, an Argentine expert warned. Read full article
Comments
Disclaimer & comment rulesCurrently Argentina is shipping soy oil to India, Bangladesh and Iran but at a lower price than to China and 76 US dollars below the price of Brazilian soy
Aug 13th, 2010 - 08:39 am - Link - Report abuse 0Result misery as Wilkins Micawber would say
Yeah, always crying Oil exporters should meet China new sanitary measures and that’s it.
Aug 13th, 2010 - 08:52 am - Link - Report abuse 0And Chinese should stop the dumping of manufacture products to Argiland.
Agri-Business always wanted others to pay for their fault no way. Keep selling cheaper to India who cares after all Indian get some benefit by paying less.
They love Adam Smith and the Chicago boys so why not to start to practicing some stuff of free market ideology?
Improve the product to the standard that the Client demands, the estate should not intervene at all.
Because make us look socialist, hahaha.
Keep selling cheaper to India who cares after all Indian get some benefit by paying less.
Aug 13th, 2010 - 09:17 am - Link - Report abuse 0Philanthropy WAY TO GO LOL
“Because make us look socialist, hahaha.”
Aug 13th, 2010 - 02:18 pm - Link - Report abuse 0Argentina. Still crooks after all these years!!
Lots of people critize Mexico´s trade dependancy with the US, yet Mexico´s export commodities and agricultural products only account for 13% of our trade, the rest of our exports to the US are cars, computers, electronic and electrical equipment, aerospace parts and equipment, and many other manufactured goods.
Aug 13th, 2010 - 03:56 pm - Link - Report abuse 0I see a very dangerous trend in south america when we can clearly see how dependant Argentina, Brazil and Paraguay have become of their trade with China. The problem here is that most of southamerican exports to China are commodities, soy, oil, wheat, etc. And China, by contrast, unloads a massive export of cheap consumer electronics to southamerica.
That´s not very healthy for South America in the long run.
José,
Aug 13th, 2010 - 07:13 pm - Link - Report abuse 0- Mexico's exports to the US account for SEVENTY percent of its total exports.
- Brazil's exports to China account for THIRTEEN percent of its total exports. And Argentina's numbers are not very different from those of Brazil.
Brazil and Argentina are NOWHERE as dependant of China as Mexico is of the US.
Plus 68% of Brazil's exports are made up of manufactured products, mostly of which are autos, auto parts and planes. Brazil's auto industry is trhe largest in Latin America, and its aircraft enterprise, Embraer, is the second in the Americas (behind Boeing only).
6 Forgetit87
Aug 14th, 2010 - 12:05 pm - Link - Report abuse 0I never said Mexico did not depend on its trade with the US, we are actually their second or third trade partner.
Trade dependance is common in the world, Japan depended on its exports to the US for many years, China depends largely on its exports to the United States too.
Most trade relationships are good for countries, but there are relationships that are not good. When you have country like China selling southamericans manufactured goods in exchange for soy, oil, wheat, that is a real problem.
Our trade with the US is natural as we are neighbors, but that trade relationship does not generate a commodity dependance for Mexico because most of what we export to the US are manufactured goods.
My point is that South America is developing a commodity dependance with China.
We all know Brazil produces cars, airplanes and many other manufactured goods, Argentina has some industry too, and so does Chile.
But let us be honest, Brazil and Argentina's economic growth in the last years was not caused by manufactured exports, but rather by a few commodity exports like soy, oil, and that spells troubles ahead.
This analisys shows that Brazil, Argentina and other countries are now in a commodity trap.
http://www.cggc.duke.edu/pdfs/093005_Farfan_Commodity_Dependency_Uma_WB.pdf
http://www.cggc.duke.edu/pdfs/093005_Farfan_Commodity_Dependency_Uma_WB.pdf
http://www.cggc.duke.edu/pdfs/093005_Farfan_Commodity_Dependency_Uma_WB.pdf
José,
Aug 14th, 2010 - 07:16 pm - Link - Report abuse 0I'm going to repeat what I said: Brazil's exports to China account for only 12% of its total exports. That, in my opinion, is too low a number for one to speak of trade dependency. The Brazil-China relation is yet completely different from the Mexico-US one. In the latter one, any negative mood in the US market has the potencial to generate a recession in Mexican economy. As I said previously, ~70% of Mexican exports go to the US.
China is Brazil's most important single trade partner, that's true - but it's not far above the US (11%) or Argentina (9%).
In 1996, manufactured products accounted for 69% of Brazil's total exports. The percentage increased slightly in succeeding years - but only in 2009 it tied with manufactured exports. The reason for that was likely the fact that some of the greatest markets for Brazil's manufactured products - the US and the EU - receded, whilst China did not. In 2010 the Ministry of Finances, however, again reported that manufactured products accounted for 68% of Brazil's exports.
That Brazil's exports for China are mainly made up of commodities is true. But bilateral relations between the two countries are yet too low for one to speak of trade dependency.
The Dutch disease fallacy in Brazil: http://www.iconebrasil.com.br/arquivos/noticia/17.pdf
Misnistry of Finances report for June/July this year:
http://www.iconebrasil.com.br/arquivos/noticia/17.pdf
Forgetit87
Aug 14th, 2010 - 08:12 pm - Link - Report abuse 0I see your point. My only concern regarding China's trade relations with Brazil, Argentina, Chile and other countries in south america, is that China and India's appetite for commodities may create economic growth in the region, but at the expense of dutch disease, a very old problem in latin american economies. I am glad to see there are analysts who think that will not happen.
Mexico's exports to the US are so high, but I am certain Brazil will be the same if they shared a border with the largest market in the world.
Also, Mexico's exports are mostly manufactured goods and our products compete versus Chinese products. Indeed in Mexico we see China as a competitor and not as a partner and we don't really understand how Brazil and Argentina can see China as a trading partner, I know Brazil's exports to US and EU suffer because of cheaper Chinese competition. I know China's economic policies are protective and discretional, is not a good trading partner, their trade inbalances speak volumes about their trade philosopy with other nations.
On the other hand, negative moods in the US market have potential to create recessions everywhere, not only in Mexico. The last US recession had rippling effects that sent scores of banks and companies and even entire nations to bankrupcy in Europe and other places, it affected almost all the world, Brazil, Argentina and other countries in South America and Africa saw good economic growth,some of them thanks to good economic policies and a balanced export base , Brazil being the case, but many others simply benefited from a commodity boom in Asia, I suspect Argentina fits this last profile better. Others, like Hungary, Greece and several others, just doctored their economic figures.
Not too long ago, the White Man traded cheap but colorful beads with the Indians on the American continent in exchange for their gold and other high-quality goodies. Today China sells cheap but colorful beads to the Whiteman for their Food, Copper, Lithium and other high quality goodies.
Aug 16th, 2010 - 01:00 pm - Link - Report abuse 0Soy is a leach crop witch doesn't distribute capital equitably, not only it concentrate capital in fewer labourers hands, but also erodes the land and economy of people depending on this crop. China is not the only country with the people and economy in need of soy, there is also India and Pakistan, this report is just political gas, I was under the impression this issue was over and Argentina had moved on to selling soy to India, I wonder whom and why they keep this forgotten irrelevant confrontation alive ? it's over ! we moved on.
Aug 16th, 2010 - 06:07 pm - Link - Report abuse 0http://www.moneycontrol.com/news/business/india-to-buy-3615-billionargentine-soyoil2010_476594.html
“I wonder whom and why they keep this forgotten irrelevant confrontation alive ?”
Aug 17th, 2010 - 02:58 pm - Link - Report abuse 0Mostly because the current customers won't pay what the Chinese did.
And it's funny!!
#12 have you looked at a map lately ? did you noticed the distance between China to Argentina and India to Argentina ? I looked it up for you.
Aug 19th, 2010 - 01:53 am - Link - Report abuse 0The Distance from Buenos Aires to Beijing
is 19243 kilometers or 11958 miles or 10390 nautical miles
and the Distance from Buenos Aires to Mumbai
is 14944 kilometers or 9287 miles or 8069 nautical miles
http://www.timeanddate.com/worldclock/distanceresult.html?p1=51&p2=44
after you do the math look at shiping cost for everything and how the price of oil affects the profit margins, if you numbers in dream land are the same as in the rest of the world, you might noticed that a cheaper cost for shipment might give greater flexibility on the stike price.
in any case I doubt Argentina will sell to India if it wasn't convenient.
Oh Gawd. gassy's back from Mordor!
Aug 19th, 2010 - 06:50 pm - Link - Report abuse 0the precioussss, master, smeagle must have the preciousss!
Aug 19th, 2010 - 07:32 pm - Link - Report abuse 0Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!