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Latam countries' exports to mainland growing

Xinhua | Updated: 2018-07-20 10:44
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The price drops from about 50 yuan ($7.44) to 10 yuan per avocado on the domestic retail market in China. [Photo/VCG]

SHANGHAI-Avocados used to be an exotic fruit that came with a high price tag in China, but no more, thanks to rising trade with Latin America.

In 2017, China imported more than 30,000 metric tons of the fruit, over 1,000 times the amount in 2011. Along with the soaring volume, the price dropped from about 50 yuan ($7.44) to 10 yuan per avocado on the domestic retail market.

Vladimir Kocerha, economic and commercial counselor of Peru in Shanghai, said the avocado trade had benefited from China's cuts in import tariffs and continuous increases in imports of Latin American fruit.

China imported 8,800 tons, 16,700 tons and 6,700 tons of the nutritious fruit from Mexico, Chile and Peru, respectively, last year. Among the three countries, Chile leads the avocado trade, because it ensures a steady output and zero tariffs under a China-Chile free trade agreement, according to Shanghai Supafresh Trading, a long-time Chinese fruit trader.

Kocerha said that as China-Peru trade grows, Chinese trading and logistics companies are investing more in Peru, making fruit delivery more convenient. Peruvian avocados can reach the Chinese market in about one week via air transport, with lower transport costs than before.

He said that tens of thousands of Peruvians are employed in the avocado trade. With avocados as a "pioneer" product, the country hopes to export more fruit and wool products to China.

Increasing agricultural exports are expected to help create 1.3 million new jobs in Peru in 2018, up 15 percent year-on-year, according to the country's export association. In 2017, bilateral trade between China and Peru exceeded $20 billion for the first time.

In addition to avocados, Chilean cherries are selling well. China imported 125,000 tons of in-season Chilean cherries in 2017 and 2018, a record high, according to the Chilean Fruit Exporters Association.

China is now the third-largest export market for Latin America. Exports to China accounted for 10 percent of the region's total exports in 2017, up from just 1 percent in the year 2000.

Uruguayan beef, Mexican beer and Brazilian oranges are among the best-selling Latin American products in China, according to the Economic Commission for Latin America and the Caribbean.

Juan Varilias Velasquez, president of the Association of Exporters of Peru, said the upcoming China International Import Expo in November was an opportunity that Latin American countries would not miss.

"We will bring the best samples we have from our country," he said.

Alexander Mora, minister of foreign trade of Costa Rica, said that last year, Costa Rica's exports to China grew by 189 percent. The country is eyeing increased exports based on consumer needs in different regions of China.

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