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Latin America offers way out of demand doldrums

Updated: 2013-01-08 10:20
By Ding Qingfen in Santiago (China Daily)
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As Chinese exports increase, Latin American countries have been directing more trade protectionist measures against Chinese products.

Countries such as Mexico, Argentina and Peru are at the forefront of those efforts. So far, Peru has initiated 25 trade remedy cases, including 22 anti-dumping cases, against Chinese imports.

"Trade investigations have concentrated on steel and iron products, textiles and rubber goods, and the means used have been diverse," said Yu Benlin, deputy director of the Ministry of Commerce's Bureau of Fair Trade for Imports and Exports.

"We have to say the situation is quite severe."

Highly complementary

"We can see there is huge potential that trade (between China and Latin America) will surge," Yang said. "We complement each other in many categories."

China and Chile's economic ties have been greatly strengthened, especially since the countries signed a free trade agreement that came into effect in 2006.

Under the agreement, 92 percent of Chile's exports to China are tariff-free. The figure will increase to 99 percent by 2015, and about 97 percent of Chinese exports to Chile will be exempt from tariffs by the same year.

China has been the leading export destination for Chile since 2007, according to official figures.

In 2000, bilateral trade had a value of less than $20 billion. By 2011, the figure was up to $34 billion.

The value of Chilean exports to China amounted to $17.9 billion in 2011. That amount accounted for 22.2 percent of the country's gross exports and was up 7.67 percent from 2010 and 42.78 percent from 2009.

China mainly imports mining and energy goods and agricultural products from Latin America, and exports mechanical and electrical goods, telecommunications goods and services, garments and shoes.

"China mainly exported light industry goods, but the categories of telecommunications goods and high-tech goods were later added," he said.

"Besides energy and mining goods, China is also buying more agricultural goods."

One of China's main imports from Chile has long been copper, to which fresh fruits and wine have been added.

China is the largest importer of fish meal from Chile, the sixth largest importer of wine and the ninth largest importer of fruits, according to Chinese statistics.

Xie Yu in Shanghai contributed to this story.

dingqingfen@chinadaily.com.cn

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