FDI and Trade Between Argentina and China Increasing Exponentially
The emergence of China in 2021 as a global economic power has had strong impacts on most countries and regions worldwide. Latin America and Argentina have been no exception. In a few last years China became Argentina’s second most important trading partner, behind Brazil. Argentina’s trade with China is based on a clear pattern which shows in Argentina Import Export Data: Argentina exports natural resource like-based products (mainly soybeans and soybean oil), while China mostly exports manufactured goods to Argentina. This is the ‘standard pattern’ of bilateral trade relations with China for all Latin American countries.
In turn, China’s investments in Argentina have been exponentially growing significantly in recent years, although the country is still far from Asia to south America being one of the major investors in the country. The direct foreign investment relations trade is not surprising as undertaking foreign direct investment (FDI) operations requires more experience, internal capabilities, and knowledge of potential host countries. As in many other Latin American countries, China’s economic presence in Argentina has become incredibly significant over the past decade. Most significantly, China has become the main export destination for Argentina’s soy products. Increasingly, Argentina is also becoming a strategic location for Chinese firms to invest in oil and gas.
After providing an overview of these trends, this paper examines the social and environmental ramifications of Chinese economic engagement in Argentina in two ways. First is an aggregate statistical analysis of the greenhouse gas and water intensity of Chinese economic activity in Argentina. Second is a field-based case study of the performance of Chinese firms in Argentina’s oil and gas sector.
India Export to Argentina
India Export Data wants to triple exports to Argentina, eyeing an additional $1.5 billion worth of shipments, and is seeking market access for apparel, textiles, folding bicycles and home furnishing products in the South American country.
India’s exports to Argentina were $708.7 million in 2017–18, consisting mainly of organic chemicals, vehicles and auto parts, lubricants, machinery, sound and image devices and garments. Imports from Argentina were $2.2 billion, mainly soybean oil, petroleum, copper, sunflower oil, leather, wool and ferroalloys.
Argentina-Uruguay-Paraguay trade relations and agreements
The economic relations between Argentina Trade Data, Paraguay Export Data and Uruguay are comprehensive. Several different trade agreements in force between these nations reflect the efforts of their governments to maintain and strengthen trade ties.
However, in addition to strengthening relations with neighboring countries, each country has worked to diversify its trade profile not only within the region, but outside it with important trade partners in Europe and Asia.
Argentina-Paraguay
In late 2019, the governments of Paraguay and Argentina signed their first free trade agreement for the automotive sector, which provides for the tariff reduction for practically all the cars that Argentina exports to Paraguay.
Paraguay Import Data currently markets around 40,000 units of new vehicles per year. Argentina exports more than 4,000 vehicles to the country and represents the seventh-largest export market for the automotive sector.
This agreement allows the export of pick-ups and light cars with zero tariffs. The cars with higher tariffs, such as passenger cars, will have an annual and automatic reduction schedule (2019: 25% 2020: 50% — 2021: 75% — 2022: 100%). In other words, by 2022 all vehicles will enter Paraguay without tariffs.
The agreement also includes regulations and benefits regarding the importation of used auto parts and vehicles from Argentina to Paraguay.
Uruguay-Argentina
In 2003, Uruguay and Argentina signed the Agreement on the conditions for bilateral trade for products of the automotive sector. Like the agreement with Paraguay, automotive products will be marketed between the two countries without tariff rates, provided they meet origin requirements and the other conditions stipulated in the agreement.
It is important to highlight that this agreement will be applied until the MERCOSUR Automotive Policy comes into effect.
Institutional lessons from Peru and Argentina
Both Argentina and Peru created agencies to administer GATT/WTO sanctioned safeguards, antidumping, and countervailing measures. Creating these agencies was part of the politics of abandoning the informality of process, agency, and motive through which restrictions had accumulated in the past. Reformers hoped, however, to do more than just eliminate the accumulated restrictions — they hoped to change the culture of policy management, from one based on relationships (i.e. politics) to one based on transparent, criteria-based, and accountable processes. If this worked, GATT/WTO disciplined trade remedies would become the mechanisms within which domestic pressures for protection would be managed.
Brazil Exports: Argentina
Brazil Export Data: Argentina data was reported at 759.200 USD Mn in Feb 2021. This records a decrease from the previous number of 760.665 USD Mn for Jan 2021. Brazil’s Exports: Argentina data is updated monthly, averaging 669.656 USD Mn from Jan 1989 to Feb 2021, with 386 observations. The data reached an all-time high of 2.206 USD bn in Sep 2011 and a record low of 29.211 USD Mn in Feb 1990. Brazil’s Exports: Argentina data remains active status in CEIC and is reported by Ministry of Development, Industry and Trade. The data is categorized under Global Database’s Brazil.
1. Introduction
In terms of greenhouse gas emissions, we find that China is the only major export destination for which emissions intensity is growing and total emissions to China rank second (to Brazil) in terms of trade-based emission from Argentina. In terms of China’s water footprint in Argentina, we find that by 2012 China had the second largest water footprint (to Spain) in 2012, due to the concentration of Chinese imports from Argentina’s water-intensive soy sector.
The growing relevance of China as a trade and investment partner of Argentina has generated a number of concerns, including: a) domestic firms complain that their home and global market share is threatened by China, sometimes going so far as to accuse China as deploying unfair trade practices; b) employees of those industries are in danger of losing their jobs; c) environmental and social movements warn about the possible abuses of Chinese firms in light of China’s weak domestic legislation in those areas and the antecedents of poor environmental and labor standards applied by Chinese firms when they invest abroad; d) as many Chinese firms investing abroad are State-owned, fears in the political arena emerge, mainly related to sovereignty issues; e) as bilateral trade and FDI with China are strongly concentrated in natural resources, concern about the sustainable use of those resources and the environmental impacts of their exploitation have emerged.
2. Bilateral trade and investment flows
Bilateral trade between Argentina and China has been growing quickly in recent years (Table 1). China’s share in Argentine exports increased from 1.4 to 6.4% between 1995 and 2012, having peaked at 9.2% in 2007. Currently, China is tied with Chile as the second-largest buyer of Argentina’s exports (Brazil is first). The fall in China’s share in recent years is related to the reduction in soybean oil exports. In 2009 45% of Argentina’s exports of soybean oil went to China (USD 1,440 million), but afterwards exports to China fell dramatically (USD 255 million in 2010), to later recover but without reaching the 2009 levels (USD 853 million in 2012, less than 20% of total Argentina’s exports of soybean oil).
Conclusions
As stated in the introduction, this study should be considered an exploration of relatively new subjects. Argentinean exports to China have grown quickly and currently China is among its major trade partners, but exports are extremely concentrated on soybean and its derivatives. This export basket produces less carbon emissions per dollar than exports to other markets, but that difference has been narrowing, as China is the only major trading partner associated with rising carbon emissions intensity. China’s impact on water consumption is more direct, as soy is a high-water consumption crop, and its water footprint is relatively large.
This article provides you with some valuable insights about how Argentina Import Data & Argentina Export Data can be beneficial for the growth and expansion of the business. What are the factors that one should consider while assessing export data and how it can be used to form business trade policies? In my opinion, Argentina trade data can be worthwhile for any business looking out from expanding its business and strategic decision making. It can provide some groundwork and a great understanding of the prospective markets and make a business move accordingly. Export trade enables one to understand the trade mechanics, supply chain, market conditions, and market opportunities. Paraguay Export data aids one to know the exact trade conditions in the country, the trade policies, goods in demand, supply chain, etc. Investing in trade data of growing countries such as Paraguay, Costa Rica, Argentina, etc can help one to cognize the international demand of local goods and services in the market, the speculated market size, trade barriers, etc.
