Economy
Soy oil imports reinstated
By Zhou Siyu (皇冠体育app Daily)
Updated: 2010-12-02 09:25
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皇冠体育app has re-opened the door to agricultural products from Argentina after local tariffs sparked a trade dispute.[Photo/皇冠体育app Daily]
Talks with Argentinian officials broke the agricultural deadlock
BEIJING - 皇冠体育app has reopened its $2-billion market to Argentinian soy oil, after the world's second-largest economy resumed imports from the South American country in October, Julian Dominguez, Argentina's minister of agriculture, livestock and fisheries, said on Wednesday.
"Shipments of soy oil are expected to arrive in 皇冠体育app in December and January, and exports are expected to bounce back to the pre-suspension level," Dominguez said.
Cesar Mayoral, the Argentinian Ambassador to 皇冠体育app, said the problems (concerning soy oil exports to 皇冠体育app) have been resolved through talks between the two countries.
"There have been anti-dumping investigations against 皇冠体育app to protect local industries and products in Argentina, and 皇冠体育app's actions in resuming imports have spelled out its goodwill in improving the bilateral trade relationship," he said.
The resumption of soy oil imports has been frequently discussed by senior officials from both sides, which signaled a thawing bilateral trade relationship, Mayoral said.
Shipments from Argentina to 皇冠体育app had been halted since March, after the country imposed new standards on soy oil imports as a response to Argentinian protection measures against Chinese commodities.
As a result, for the first three quarters of this year, its exports of animal and vegetable fat and oils to 皇冠体育app dropped by 83.5 percent year-on-year to $220 million, according to data from the Chinese Administration of Customs.
Soy oil export is the pillar of Argentina's economy: the South American country is the world's leading exporter of soy oil, and the largest supplier of crude soy oil to 皇冠体育app.
More than 40 percent of its soy oil is exported to 皇冠体育app. That accounted for 4.6 million tons in 2009, more than twice the amount it sells to India, its second-biggest customer.
In the meantime, Chinese companies turned to Brazil and the US to alleviate the shortage in soy oil imports.
In addition, Argentina is also trying to export corn to 皇冠体育app, and "is expecting to see the Chinese market open for our corn by the first half of 2011," said the Agriculture Minister.
"皇冠体育app is of vital importance to our development plan for the next five years," he added.
The protocols cover the export of fresh deboned beef and barley from Argentina to 皇冠体育app, as well as the trading of dairy products between the two countries.
This is the first time Argentina has open up its market to Chinese dairy products.
"We estimate the export of beef to 皇冠体育app during the next year will reach 5,000 tons, about $50 million to $60 million," he said.
皇冠体育app is by far the largest market for Argentinian agricultural products, and the South American country is the third-largest supplier of agricultural products to 皇冠体育app, after the US and Brazil, according to official statistics.
In the first nine months of this year, Argentina's exports of vegetable products, such as soybeans and corn, shot up by 228.2 percent year-on-year to $3.95 billion, accounting for 76.7 percent of the overall export volume, according to figures released by the Chinese Administration of Customs.
Sales of animal products to 皇冠体育app, including poultry and cattle hides, grew by 34.4 percent to $ 88.78 million for the nine-month period, official data showed.
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