Argentina is awaiting the official response of the BRICS Heads of State, to enter the bloc and the New Development Bank, which is under the tutelage of Dilma Rousseff until 2024, as a member. accessible, for infrastructure, health and education, have prompted the Argentine government to take a favorable position regarding the group and its role on the geopolitical tableau.
An interesting point to analyze is the flow of trade that Argentina maintains with these countries and the impact on its domestic economy. Brazil It occupies a determining role for Argentine foreign trade, being the main destination of its exports and at the same time the main supplier of intermediate goods. So far in 2023, with the latest report on the export and import balance of July, sales to the neighboring country reached USD 6,746 billion, led by manufacturing shipments of industrial origin- USD 4,000 billion- followed by manufacturing of primary origin- USD.1,000 million- and primary products- USD 883 million. At the same time, it represents more than 77% of the dispatches in the MERCOSUR bloc. The products that lead the ranking are those of the automotive industry, where vehicles for transporting goods and people stand out.
With China, the second most important trading partner, in 2023, a flow of shipments of merchandise for USD 3,159 million is maintained, headed by manufactures of agricultural origin- USD 1,521 million- and primary products- USD 1,307-. The products that concentrate shipments are the bovine meat; he crude soybean oil, whether or not gummed; and the barley grain excluding brewing.
On the other hand, the commercial exchange with the India It is characterized mainly by manufacturing shipments of agricultural origin, led by the crude soybean oil, sunflower soybean oil, non-monetary gold, hides and tanned bovine hides. These products reach values of USD 1,786 million. The Asian country is a strategic ally for Argentine agricultural products, and is positioned behind Beijing in volume of shipments.
The business relationship with Russia, despite the war, remains at stable levels. Moscow is not a strategic ally on the commercial front, in quantitative terms. But some Argentine products have a good insertion in said market. The main products exported to that country are led by fresh pears-28 million- shrimp and prawns– 16 million– lemons-15 million- and bovine livers-14 million. Argentina is a renowned player in what corresponds to the export of lemons and pears. Regarding citrus, in 2020, it contributed about 20% of world production according to the United States Department of Agriculture, estimated at 6.5 million tons. And according to the value chain report from the Ministry of Economy, one of the main destination markets for fresh fruit is Russia. In relation to pears, Argentina is the second exporter worldwide, and is located behind China. In 2022, about 330,000 tons were exported, which meant a foreign exchange income of USD 270 million. 27% of the fruit that comes from Rio Negro and Neuquén, was destined for Moscow, being the main client for our country. Another item that is also relevant is the dairy. Russia It is the second or third destination, depending on the year, behind Brazil (by far the main external customer) alternating with Algeria, but it holds a notable primacy: it is the main buyer of butterbasically produced in Córdoba, which went on to place 41% of its product exports in Russia in 2016 to almost all of it in 2022.
The current agreement between MERCOSUR-SACU, also known as the Agreement on Fixed Tariff Preferences, allowed to promote the bilateral and commercial relationship between Argentina and South Africa. In the work of Carlos D`Elia and Nestor E. Stancanelli “Argentina-South Africa: insertion in the world and bilateral relationshipl” it is mentioned that “the links between South Africa and Argentina are of a strategic nature, that is, with significant long-term interests. The two countries, depending on their endowment of resources and political and economic evolution, share values and principles in the search for a fairer and more balanced world. At the same time, they have common interests in terms of integration for their purposes of expanding value chains and increasing employment, based on the economies of scale offered by the expanded market.”
In the first seven months of the year, trade with South Africa, especially Argentine shipments to that country, reached USD 129 million, led by soybean pellets and meal; auto parts and accessories; crude soybean oil and frozen bovine tails.
If we analyze the exports of the BRICS countries, they reach 12,000 million, 33.5% of the total sent in 2023. Thus, the block is constituted as a primary actor for the entry of genuine foreign currency and to strengthen the reserves of the Central Bank of Argentina.
BRICS+ Honorary Ambassador in Argentina
Source: Ambito
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