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Argentina Free Trade agreement with China enhanced the future trade (1)


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Title: Argentina Free Trade agreement with China enhanced the future trade (1)

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 Argentinas second most
important trading partner, behind Brazil.
Argentinas 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, Chinas 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, Chinas economic presence in Argentina
has become incredibly significant over the past
decade. Most significantly, China has become the
main export destination for Argentinas 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 Argentinas 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.
Argentina-Uruguay-Paraguay trade relations and
Indias exports to Argentina were 708.7 million
in 201718, 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.
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 I
n 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
Peru Import Data 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.
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. Brazils 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. Brazils Exports
Argentina data remains active status in CEIC and
is reported by Ministry of Development, Industry
and Trade. The data is categorized under Global
Databases 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 Chinas 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
Argentinas 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 Chinas 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).
Chinas 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
Argentinas exports (Brazil is first). The fall
in Chinas share in recent years is related to
the reduction in soybean oil exports.
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. Chinas impact on water consumption
is more direct, as soy is a high-water
consumption crop, and its water footprint is
relatively large.
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