China permits incoming Argentine soyoil

An Argentina-China agreement to unlock the soyoil conflict seems to move forward, as China has agreed to allow all cargo ships on their way to China to unload soyoil at Chinese ports, according to a government official.

The source revealed that this is only a partial agreement as trade negotiations between both countries continue.

The official said that this initial agreement was reached thanks to the efforts made by the staffers of the Agriculture Ministry and The National Food Health Service (SENASA), who travelled to China in an attempt to solve the conflict.

Meanwhile, the Chinese blockade continues as new soyoil shipments will not be allowed to enter the Asian ports.

Authorities from both countries have been holding meetings since last week when Foreign Minister Jorge Taiana met with Chinese ambassador, Gang Zeng, after Beijing decided to put into effect measures that tend to restrict Argentine soyoil imports.

Chinese authorities said new safety standards on Argentine soyoil, initiated last week, were purely on safety grounds and not intended as curbs on imports, although this is likely to be their impact.

The Chinese Commerce Ministry said solvent residues used for processing soyoil should not exceed 100 parts per million (ppm), whereas the solvent residue level in soyoil imported from Argentina was around 300 ppm, according to a report.

Chinese soyoil traders may ''gradually'' delay or cancel imports from Argentina after the government toughened inspections, the China National Grain and Oils Information Centre said.

However, Argentina is remains positive that talks will end a blockade by China on soyoil imports that may cost the South American country as much as US$2 billion, Miguel Calvo, vice president of the Argentine Soybean Chain Association, said.

China has accumulated massive reserves of soy, palm and rapeseed oil, putting pressure on the country's crushing industry that is operating at just half its 94 million tonnes a year capacity. On top of the reserves, China bought 7.1 million tonnes of soy in the first two months of this year, an increase of nearly 12%t from a year ago.