Argentine problems to supply China with soy oil.
Argentine soybean field
China ruled out resumption of soybean oil imports from Argentina in the next few months after talks between trade officials failed to resolve a dispute over anti- dumping measures, said two traders and an industry official.
Issues include China’s request that Buenos Aires recognizes it as a “market economy,” which would limit the size of anti- dumping duties on Chinese products, said the three people, who declined to be identified as the meeting this week was private. China also wants Buenos Aires to lift duties on shoes and steel products, they said.
China halted shipments from Argentina, the world’s biggest supplier, in April. The government last month told companies including Cofco Ltd. that it will maintain the embargo and buyers should seek supplies from Brazil and the U.S.
China is the world’s biggest consumer of vegetable oil.
“It seems China will have to look for ways to import soybean oil from other countries such as Brazil and the U.S. in the second and third quarter if they can’t resolve their dispute,” Tommy Xiao, analyst at Shanghai JC Intelligence Co., said by phone from Shanghai today.
The two trading executives were told of this week’s meetings by officials from the state-backed China Chamber of Commerce for Import and Export of Foodstuffs,Native Produce And Animal By-Products. The third person is an official from the chamber, which has subsequently informed importers not to restart imports from Argentina, they said. READ MORE HERE