Argentina and China in trade dispute over soya oil

Argentina and China are locked in a growing trade dispute after the Chinese government said it plans to boycott imports of soya oil from Argentina.

A Chinese ban on imports of soya oil could have a devastating effect on the Argentine economy.  Argentina is the biggest exporter of soya oil in the world and China is it’s biggest single customer.  In 2009 the country exported over 1.8 million tonnes of soya oil worth $1.4 billion to China.

On Monday the government formally complained to the Chinese authorities after China’s traders were told not to buy Argentine soya oil last week.

China says Argentine oil could be banned because it fails to meet new quality standards and contains excessive levels of a solvent used in processing.

The move is also seen as the latest move in a long running trade dispute between the two countries.  At the end of 2008 Argentina proposed “anti-dumping” restrictions on imports of some Chinese goods including footwear and textiles to protect domestic industries.