BUENOS AIRES (Commodity Online) : In an attempt to end trade dispute with China, world's top soy oil exporter Argentina asked the dragon nation to suspend its decision to halt soy oil imports.
Argentina's foreign ministry in a statement said the decision is of great concern and urged Beijing to suspend the measure and ensure it does not come into force.
Last week, a Chinese trade body urged traders not to buy Argentine soy oil in retaliation for the country's decision to restrict imports of Chinese products ranging from shoes to steel pipes.
China's quarantine bureau would restate quality standards for soyoil imports, effectively restricting shipments of the edible oil from Argentina.
Last year, Argentina, the world's leading soyoil seller, exported to China 1.84 million tonnes of soyoil worth $1.4 billion and a prolonged conflict could end up benefiting US or Brazilian soyoil exports, analysts said.
Some analysts said the conflict might mean export business shifted to other leading producers such as Brazil and the United States.
Soybean and soy derivative exports are a pillar of Argentina's economy and the government could lose some US$600 million in tax revenue this year if Chinese soyoil exports are suspended, according to analysts.
Argentina, Latin America's No. 3 economy, is facing a financing crunch this year to meet debt obligations of up to $15 billion.