Argentina: Activity in Asia to boost trade and fashion

RICHARD SMITH

There are signs that Argentina is gradually consolidating and increasing its trade links with Asia. Back in 2004 then president Nestor Kirchner went to China and opened up the agro trade with that country. Argentina is now China’s biggest supplier of soy products as well as exporting other raw materials such as leather.

At the beginning of August an official presidential visit to China took place by a delegation headed up by President Cristina Fernandez de Kirchner. Included in that delegation of 70 businessmen invited by the Foreign Ministry were Horacio Moschetto of the Argentine Footwear Chamber (CIC) and Raul Zylbersztein, president of the Argentine Leather Goods Chamber, CIMA.

The main purpose of the visit was to overcome a blockade of soy oil imports imposed by China in retaliation to punitive import duties imposed by Argentina on certain Chinese products, including steel pipes and footwear. But with 70 representatives from all sectors of the Argentine economy present there was plenty of leeway to explore other avenues of trade and bilateral cooperation.

Mixed reports about the success of this trip have been published in Argentina but the Foreign Ministry has stated that soy oil exports “are expected to resume in September” after four months of being blocked.

The key to unblocking the soy oil dispute was the offer by Argentina to buy US$13 billion of railway equipment from China. In addition, China needs to import 70% of the soy oil it consumes since it only produces 15 million tons of soybeans compared to Argentina’s 55 million tons per year.

The presence of Moschetto and Zylbersztein in the Chinese delegation begs the question whether Argentina can actively start exporting footwear and leather goods to China. The market is there but the question is whether there is enough political will and subsidies in Buenos Aires to give these sector the necessary push. Argentina has the quality and China has the consumers with western tastes and the desire to gain status by buying quality craftsmanship, style and fashion.

With Argentina’s GDP expected to grow by 6.6% this year and 4.6% in 2011, the time is ripe to increase investment in the efforts of potential exporters in the footwear and leather goods industries. Almost all of the companies are classified as small to medium enterprises and require substantial funding to gain a foothold in the booming Asian marketplace.

In another development on the fashion front in Asia fifteen Argentina designers have been selected to represent the City of Buenos Aires at the Rooms fashion fair due to take place in Tokyo at the Yoyogi National Stadium from August 31st to September 2nd. The fifteen designers selected are Jesús Fernández, Greta Flora, Dozena, Cosecha Vintage, Leandro Domínguez, Pampa y Pop, Viva la vida, Carla Di Si, Cora Gropo, Renato Belforte, Kostume, Sixfeet, Baumm, Iskin and Naye Quiroz.