The Agriculture, Livestock and Fisheries Secretariat of the Argentine Ministry of Economy announced that China has decided to extend or reduce import tariffs on 143 Argentine agricultural products. The measure, implemented by China's Ministry of Finance, aims to boost consumer spending and adjust temporary tariffs according to market demand and local supply trends.
Source: Getty ImagesThis strategy was implemented by China in 2016 for supplier countries that do not have a free trade agreement. According to the Argentine Secretariat, tariff reductions can improve access conditions to the Chinese market.
Advantageous products
Products that will benefit from the measure include dairy products, oilseeds and orange juice. For dairy products, the duty rate for medical formula for infants was reduced to 0% and remained at 8% for nonfresh cheese. For regular infant formula, the rates vary between 5% and 0%, while for whey and milk protein they are 2% and 5%, respectively.
For oilseeds, temporary tariffs on flax and sunflower seeds were maintained and reduced from 15% to 9%. For orange juice, the reduction from 30% to 20% was maintained.
Other products on the list that also benefit from the measure include animal feed, pet food, vegetables, spices, fish, fruit and wood. The aim of such reductions is to promote product diversity on the Chinese market and boost domestic consumption.
Impact on SinoArgentine trade relations
Although China implemented this policy in 2016, the impact of such measures on trade between Argentina and China is only now becoming clearly visible. By promoting the import of various Argentine agricultural products, China is not only diversifying its market offerings but also strengthening its trade ties with Argentina.