MARKET DEVELOPMENT
30-06-2004
Argentina Signs Agricultural Memo Of Understanding
Buenos Aires, June 28 (OsterDowJones) - Argentina and China havesigned a memorandum of understanding on biotechnology and biosecurity,Argentina's Agriculture Secretariat said Monday.The signing of the memorandum, which took place at the beginning of avisit by Argentine President Nestor Kirchner to China, means Argentinawill work closer with China on agricultural trade and relatedbiotechnology issues."Through this accord, we will look to strengthen the exchange ofinformation between the two countries and, fundamentally, to facilitatethe trade of biotech products," Miguel Campos, Argentina's AgricultureSecretary, said in a statement Monday.China is a major importer of Argentine agricultural goods, especiallysoybeans and soy-based products. Last year, China bought at least $2.2billion worth of agricultural goods, according to Secretariat data."China has become our top trade partner, accounting for 14% of totalArgentine exports," Campos said. "We are very interested in maintainingcooperation with China in different areas, such as biotechnology, bovinegenetics, no-till farming and forestry."As the world's No. 2 user of genetically modified crops, or GMOs,Argentina is also interested in ensuring that China has no problemimporting such goods.To ensure cooperation on this front, Campos said Argentina and Chinawill create a "working group" comprised of technical officials from bothcountries. The aim of the group will be to "facilitate the cross-bordermovement of genetically modified organisms."Roughly 98% of Argentina's soybean crop is genetically modified,according to official data. Moreover, 40% of the country's corn crop ismodified and 20% of its cotton products are derived from GMOs. In total,23% of Argentina's planted crop area is dedicated to farming GMOs.Given that China buys about two-thirds of local soybean exports, thecreation of this new working group is "strategically important" forArgentina."Surely exports to China of new biotechnology products will increase,"the Secretariat said in a statement.Meanwhile, Argentina has also pledged to help China develop its ownbiotechnology program. By 2005, China will have invested $1.2 billionboosting its own biotech program, according to Secretariat data.Cooperation is a big part of Argentina's negotiating strategy withChina. "Cooperation first; then commerce," Campos is fond of saying."From the Secretariat that I run, we will do everything necessary sothat neither geographic distance nor cultural differences become anobstacle to the development of our commercial relationship," Campos said.On Tuesday, Campos will meet with officials from China's animal andvegetable health authority, or AQSIQ, to discuss protocols related to suchimports as citrus and beef, among other goods.Later, Campos will meet with Kirchner to inaugurate a permanentArgentine agricultural attache office in Beijing. Campos knows theposition well, as he was Argentina's agricultural attache in Brazil priorto becoming Agriculture Secretary last year.
