China will commence imports of Argentine corn following recent regulatory clearances, heralding a boost in bilateral trade ties. Reports from Wednesday confirm the approval for entry of two genetically modified corn varieties from Argentina, positioning the South American nation, a major global corn supplier, to penetrate the Chinese market anew.
The agreement restarts corn trade between these nations after a hiatus, with initial shipments potentially starting by July. The resumption transcends mere commerce, marking a significant step in fortifying bilateral relations through augmented agricultural trade, as noted by sector experts.
Jiang Shixue, a professor at the Shanghai University Center for Latin American Studies, underscored the mutual advantages expected from this enhanced trade. “Exporting more goods to China and generating additional revenue streams will also boost the economy of Argentina, which is currently facing difficulties,” Jiang stated.
In a late April exclusive interview, Argentine Foreign Minister Diana Mondino underscored the scope for expanded cooperation between the two nations, encompassing agriculture, mineral mining including lithium, and the energy sector.
Industry specialists have indicated that diversifying corn supplies will bolster China’s food security and contribute to the stabilization of domestic corn prices. Despite the boost in imports, significant shifts in the supply-demand dynamics within China’s corn market are not anticipated.
In 2023, China’s corn imports surged by 31.6%, totaling over 27 million tons. Yet, Argentina did not rank among China’s principal corn suppliers in that year. This new arrangement could alter that status.
Gao, a seasoned industry analyst, commented on Argentina’s corn surplus, suggesting that the exportable volume might be modest. Nonetheless, a Chinese Academy of Agricultural Sciences report from May forecasts China’s net corn imports could reach approximately 25.64 million tons in 2024.
This pact occurs as trade between China and Argentina has contracted, with a 34.7 percent reduction in the first four months of the year, totaling $3.97 billion according to recent customs data.
The revitalization of corn trade channels between China and Argentina is poised to enhance their economic, political, and strategic partnerships, grounded on mutual respect and shared benefits.
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