June 26, 2012

Argentina, China sign economic cooperation agreements

During a state visit by Chinese Premier Wen Jiabao, the governments of Argentina and China signed agreements Monday (June 25) covering nuclear energy and agriculture, among other areas.

The agriculture ministers from both countries signed treaties to promote cooperation in transgenic seeds, biotechnology and bilateral farm investments.

Argentina is one of the world's biggest producers of grain, oilseeds and related products such as soyoil. China is a major buyer of Argentine soymeal, soyoil and soy.

The two countries have been in talks for more than a year to reach the sanitary accord needed to clear the shipment of Argentina's transgenic corn varieties to China.

Argentine and Chinese officials also signed a treaty on mutual legal assistance in criminal matters.

Other agreements included trade financing, cooperation in nuclear energy and a Chinese loan to upgrade the Belgrano railroad.

China is Argentina's No. two trade partner--a distant second behind Brazil--with bilateral commerce reaching US$16.75 billion in 2011. However, the South American nation ran a trade deficit of US$4.40 billion with China that year, according to Argentine data.

Argentina has attracted significant direct investment from China in recent years, with Chinese firms investing in iron-ore mining, banking, oil and agriculture.

Wen arrived in Buenos Aires on Saturday (June 23), and is scheduled to depart later Monday (June 25) for Chile, where he will end his South American goodwill tour that included stops in Brazil and Uruguay.