Argentina in Line for More Chinese Capital
28 July 2011 As of last month, China had become the second-largest trading partner for Argentina, while Argentina was China’s fourth-largest trading partner in Latin America, data from the Chinese Ministry of Commerce showed.
Chinese investments are becoming more important to Argentina, Luis Kreckler, Argentine secretary of trade and international economic relations, told China Daily last week.
Chinese investment has created more than 5,800 jobs in Argentina so far and will provide the Argentine people with 4,000 to 5,000 jobs in the next three years, said Wang Chao, Chinese vice-minister of commerce. “We are confident about better cooperation in the coming years.”
The agricultural industry in Argentina is particularly interested in attracting more Chinese investments, said Julian Dominguez, the agriculture minister.
Trade in agricultural commodities is also likely to surge. China is expected to start imports of Argentine corn by 2012. The two governments are still holding discussions and have yet to work out a specific time frame, Dominguez said.
China is by far the largest market for Argentine agricultural products. It imported more than 40 percent of Argentina’s soy oil, which amounted to 4.6 million tons in 2009, more than twice the amount sold to India, the second-biggest customer.
Argentina has held several rounds of talks with China about imports of Argentine corn. In 2012, corn production in Argentina is expected to reach 30 million tons, compared with 22 million tons this year. About 8 million tons of corn is forecast to be consumed domestically, with the rest to be exported.
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