July 2, 2004

 

 

Argentina's Trip To China Opens Doors For Soybeans

 

Argentina, a top exporter of agricultural goods, made successful inroads this week into China, the world's fastest growing importer of such products, an Argentine official said Thursday.

 

Agriculture Secretary Miguel Campos, who accompanied Argentine President Nestor Kirchner on a trade mission to China, said the trip went well and has already achieved benefits.

 

The Asian powerhouse is already a huge importer of such products, Agriculture Secretariat data show.

 

China imports 8.3% of Argentina's total exports and it buys around 14% of all Argentine farm exports.

 

Exports to China grew 206% between 2000 and 2003. During this time the value of exports to China tripled to $2.44 billion, compared with $797 million in 2000.

 

SOYBEAN EXPORTS

 

But the vast bulk of exports to China are related to soybeans or soybean products like soyoil.

 

Because of this, Campos was tasked this week with both opening new doors and protecting access for soybeans.

 

Argentina exported more than 8 million metric tons of soybeans last year. About 6 million tons went to China, making the country exceptionally important to local exports.

 

However, exporters here expressed concern this week over a new resolution that will reportedly allow China to change the price of food products when they arrive at port.

 

Campos downplayed this concern, saying the resolution should not negatively affect soybean exports.

 

"Resolution 73 deals with an eventual change of rules related to the importation of grains and food," he said, after meeting with officials from China's General Administration of Quality Supervision, Inspection and Quarantine, or AQSIQ.

 

"They told us that the spirit of the norm is not to complicate commerce," Campos said. "Even so, they asked us to let them know about any doubts we have regarding the resolution and they promised to respond to each of those points. I think there will be no problems."

 

Yet another resolution, as currently written, could cause problems for soyoil exports beginning in October, Campos said. Even with this resolution, however, Campos said he is confident problems will be avoided.

 

"There is another resolution from the health ministry that affects soyoil exports," he said. "They are requiring that crude oils meet the same requirements as refined oils, but this would make it practically impossible to import oils. And it would hurt their own oil industry. So I think we'll be able to resolve this is a very short period of time."