China Lowers Tariffs on 143 Agricultural Products Including Argentina's Amid Calls for 'Sonjeol'

SCMP "Decision to Boost Consumption"
Tariffs on Dried Dent Corn and Coriander Seeds Reduced to 0%

China announced tariff reductions and extensions on 143 types of Argentine agricultural and industrial products, according to a report by Hong Kong's South China Morning Post (SCMP) on the 9th.

SCMP cited explanations from the Argentine Ministry of Economy and the Chinese Ministry of Finance, stating that the tariff reduction decision takes effect immediately, aiming to stimulate consumer spending. Since 2016, China has been lowering tariffs for countries without free trade agreements with China, considering local markets and demand.

With this decision, tariffs on dried dent corn and coriander seeds were abolished, dropping from 13% and 15% respectively to 0%. Additionally, tariffs on fruits such as cranberries and pecans, which account for about 25% of Argentina's gross domestic product (GDP), were maintained at 7%. Tariffs on oilseeds including flaxseed and sunflower seeds were adjusted from 15% to 9%. Furthermore, tariffs on infant formula, cheese, frozen shrimp, and others were either reduced or existing tariff reduction decisions were extended. Argentina is one of the world's largest exporters of frozen shrimp.

Relations between the two countries sharply deteriorated after far-right President Javier Milei took office in Argentina. Consequently, the market was focused on whether China would suspend the tariff benefits previously granted to Argentina. During his election campaign, President Milei referred to China as an "assassin" and "communist," implying a severance of relations.

President Milei also recently officially stated that he has no intention of joining BRICS (Brazil, Russia, India, China, South Africa), the group of five emerging economies led by China. On the 22nd of last month (local time), he reportedly sent a letter to BRICS member country leaders expressing that "this is not the appropriate time for Argentina to join BRICS."

Earlier, China pressured President Milei by halting negotiations on a currency swap agreement worth 6.5 billion dollars (approximately 8.48 trillion won) with Argentina. The two countries had renewed the currency swap annually since 2009. For Argentina, whose dollar reserves are in negative territory and is effectively in a state of international default, the currency swap with China has been regarded as one of the few credit options among South American countries.