November 5, 2010

Argentina to sign beef export deal with China by month-end

Argentina's minister of agriculture plans to sign a deal to export beef to China during a late November trip, as trade between the two countries recovers, Argentina's vice minister of commerce said Thursday (Nov 4).

Trade ties are on an upswing after a long summer in which China blocked Argentine soyoil shipments. China has been a heavy buyer of Argentine soyoil since the de facto import ban was lifted a few weeks ago.

"This is going to be very good for equilibrating our bilateral trade," said Luis Maria Kreckler, Argentina's vice minister for foreign affairs and international trade.

China suspended soyoil purchases on quality grounds in March and lifted the ban in October, as domestic inflation concerns grew. The Argentine side believed the ban was in retaliation for Argentine anti-dumping cases that affected about 4% of imports from China.

"The situation has normalised between the two sides. There is dialogue and everything is working out," Kreckler said.

Exports of beef without bone to China could help revitalise the beef industry in Argentina, where the national herd has shrunk by 10 million head over the past three years to about 48 million thanks to drought and more profitable margins from soy.

Soy is the more important item of trade, accounting for over 60% of Argentine exports to China.

"Now they are looking for and demanding Argentine soyoil. I believe we have an excellent climate for business with China now. The situation has normalised," Kreckler said.