In a significant development for international trade, China has recently announced a reduction and extension of tariffs on 143 Argentine agricultural and industrial products. This decision by the Chinese finance ministry is expected to impact both domestic and global markets.
The tariff reductions, which are effective immediately, are part of China’s ongoing strategy to balance resource coordination between domestic and international markets. The Chinese finance ministry stated that this move aligns with the country’s policy of “implementing fully, accurately, and comprehensively” to stimulate end-consumer spending.
Since 2016, China has been adopting tariff reduction policies, primarily targeting countries without a free-trade agreement with Beijing. The implementation of these policies is typically contingent upon the conditions of China’s local market and consumer demands.
Key adjustments in the tariff policy include the removal of tariffs on products such as dry sweetcorn and coriander seeds, which were previously taxed at 13% and 15%, respectively. These items will now attract zero percent tariffs.
The decision is also a boost for Argentina’s dairy industry, with reductions announced on tariffs for infant formula and various cheeses. Despite these changes, a 2% tariff on Argentina’s frozen shrimp, a significant export item, remains unchanged. Other seafood items, however, will benefit from lower tariffs.
This move by Beijing is also set to support Buenos Aires’s agricultural sector, which is a crucial part of the national economy, contributing to nearly a quarter of Argentina’s GDP. Notably, tariffs on fruits like cranberries and pecans will remain at 7%.
Additionally, the food industry continues to benefit from ongoing tariff reductions on a range of products, including infant formula and dulce de leche. Tariffs on orange juice have been reduced from 30% to 20%, and the policy has been extended to include the animal feed and pet food sectors, encompassing items like alfalfa bales and pet food.
In the forestry sector, China will maintain tariff reductions on wood products. This includes a zero tariff rate on items such as charcoal and wood wool, and reduced rates for specific types of wood used in veneer or plywood production.
Despite the routine nature of China’s tariff reduction renewals, there were uncertainties about the continuation of these trade benefits to Argentina due to recent bilateral tensions.
Argentina’s newly elected president, Javier Milei, had expressed intentions during his campaign to shift the country’s foreign relations focus. Following his election victory, President Milei declined an invitation for Argentina to join an expansion of the BRICS group and made decisions regarding military equipment purchases that indicated a change in the country’s foreign policy direction.
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