WikiLeaks logo
The Global Intelligence Files,
files released so far...

The Global Intelligence Files

The Global Intelligence Files

On Monday February 27th, 2012, WikiLeaks began publishing The Global Intelligence Files, over five million e-mails from the Texas headquartered "global intelligence" company Stratfor. The e-mails date between July 2004 and late December 2011. They reveal the inner workings of a company that fronts as an intelligence publisher, but provides confidential intelligence services to large corporations, such as Bhopal's Dow Chemical Co., Lockheed Martin, Northrop Grumman, Raytheon and government agencies, including the US Department of Homeland Security, the US Marines and the US Defence Intelligence Agency. The emails show Stratfor's web of informers, pay-off structure, payment laundering techniques and psychological methods.

Re: Cat3 for comment - Argentina/China - An intensifying trade spat

Released on 2012-03-05 09:00 GMT

Email-ID 956994
Date 2010-05-19 18:23:39
not as good as China when you compare demand, also have to look at price
On May 19, 2010, at 11:13 AM, Jennifer Richmond wrote:

This looks good. My only thought is Argentina is playing a dangerous
game that could backfire at negotiations. China has alternative for soy
imports. Argentina doesn't seem to have that many alternatives for
Chinese exports, or do they?

Reva Bhalla wrote:

hah, wow. i got my election dates completely mixed up. thanks for
comments. will incorporate
On May 19, 2010, at 11:04 AM, Allison Fedirka wrote:

Reva Bhalla wrote:

In a move that is sure to escalate Argentina's ongoing trade spat
with China, Argentina's Ministry of Tourism and Industry announced
May 19 that it has imposed new anti-dumping measures on Chinese
and Indonesian textiles. The new measures impose a 14.28 percent
duty on Chinese polyester yarn and a 7.52 percent duty on
Indonesian polyester yarn. In the midst of the global economic
crisis in 2009, Argentina imposed 18 anti-dumping measures on
Chinese goods, ranging from steel to pipes to textiles, as Buenos
Aires watched its balance of trade surplus gradually shrink under
economic pressures at home and abroad (Argentina reported a trade
deficit with China of $600 million in the first two months of

Beijing's retaliation strategy quickly honed in on Argentina's
soybean product exports to China. On April 1, China issued a
warning to importers of Argentine soybean oil, claiming that
Argentina's soybean oil contained unacceptably high traces of
solvents. Shortly thereafter, China transferred the right to issue
permits for soy imports to the Ministry of Commerce, where central
government authorities stopped issuing permits to import Argentine
soybean oil. While Argentina reportedly supplied China with 77
percent of its soybean oil in 2009, Argentina's overall market
share of Chinese soybean imports has fallen from 33 percent in
2007/08 to 15 percent in 2008/09 due to severe drought conditions
and the government's ongoing battle with local farmers over the
state's populist-driven price controls and export tariffs on
Grains (yes they tax other food products but the big protests were
related to grains) food products.

Chinese soybean demand is meanwhile on a steady rise, and the
Chinese government has been encouraging Chinese firms to search
for alternative sources of soybean products. Those alternative
sources are mainly Brazil and the United States, who already
export large volumes of soybean to China and have the capacity to
expand that trade. China is also looking to move up the value
chain in soybean production and reduce imports of soybean oil by
expanding its domestic crushing capacity, an endeavor in which US
firms ADM, Bunge, Cargill and Louis Dreyfus are heavily invested.
STRATFOR sources have indicated that the Chinese ban on Argentine
soybean oil was in part intended to apply pressure on Buenos Aires
to repeal its anti-dumping measures on Chinese goods, but
Argentina instead appears to be trying to bolster its own
bargaining position by imposing fresh duties on Chinese goods
before an Argentine trade delegation heads to Beijing May 31-June
1 to try and work these issues out.

Argentina is likely to struggle in finding alternatives to offset
the loss in soybean trade with China. Argentine farmers, already
under heavy financial duress have shifted to exportable crops
like soybeans that are not consumed in Argentina (and thus not
subject to state price controls) in an attempt to turn a profit .
Through hefty export taxes, the government has been trying to
force farmers into producing more essential foods, like wheat,
that can be produced and consumed at home, but such price-capped
crops are not profitable for farmers to sell at home. may want to
state this sentence first, which helps explain the farmers' shift
to soy (and then in turn the govts reaction to try and get other
grains produced) At the same time, soybean farmers are also seeing
their market share reduced abroad due to the state's spats with
major buyers like China. Since Argentina is currently in harvest
season, farmers have laid off protests for now in hopes of a more
profitable export season beginning in June, but the state's
reprieve from farmer protests could be short-lived may want to
explain why - farmers can easily return to protests and or decide
to temporarily not sell/store their grain if govt controls prevent
them from getting a profit. While Argentina could look to
alternative soybean importers in the EU, Japan, Mexico and other
countries to help compensate for a decline in Chinese trade,
Argentine farmers would be doing so on the spot market, where they
already face immense trouble in accessing credit due to
Argentina's prolonged debt crisis and where the price of Argentine
grains would be less competitive. The continued deterioration of
the agricultural sector, exacerbated by trade spats like the one
playing out currently between Beijing and Buenos Aires, is likely
to be a significant contributor to social unrest in the five-month
build -up to the Oct. 2011 presidential elections. um, Oct 2011 is
17 months off. but can still talk about problems she's facing
politically and an opposition congress.

Jennifer Richmond
China Director, Stratfor
US Mobile: (512) 422-9335
China Mobile: (86) 15801890731