For Argentine entrepreneurs, maintaining robust commercial ties with Brazil and China is nothing short of essential. These two nations stand as Argentina’s primary trade partners, driving both product demand and foreign investments. However, recent discourse surrounding potential political shifts in this dynamic has raised concerns within the business community.

Brazil and China hold pivotal roles in Argentina’s commercial landscape, not only as significant importers of Argentine products but also as key contributors to the nation’s domestic production.

Brazil and China represent Argentina’s top trade partners, playing crucial roles in the country’s economic growth. Notably, they are integral to both product demand and investment in the local production network.

The current political climate has brought forth certain apprehensions. The presidential candidate and current national deputy of La Libertad Avanza (LLA), Javier Milei, declared his intention not to engage in “business with any communists” if elected, a list that includes China, Russia, and Brazil.

Industry leaders emphasize the strategic importance of maintaining strong trade relations and productive complementarities with these vital markets. Daniel Funes de Rioja, President of the Unión Industrial Argentina (UIA) and the Coordinadora de las Industrias de Productos Alimenticios (Copal), underscores the significance of Brazil and China, stating that they occupy key positions in Argentina’s trade landscape.

Brazil stands as Argentina’s primary trade partner, accounting for 17% of the country’s trade, absorbing nearly 15% of exports, and representing close to 20% of imports. The Mercosur agreement fosters integrated production chains, particularly in the automotive and autoparts sectors, chemicals, pharmaceuticals, plastics, and food industries.

China, as the second-largest trade partner, plays a crucial role in supplying industrial inputs and serves as a destination for agro-industrial exports, where Argentina has substantial potential for expanding its external sales.

In the current global context, strengthening commercial relationships with Brazil and China is pivotal, considering the fragmentation of production chains worldwide. Proximity to neighboring countries and active involvement in the Mercosur trade bloc make Brazil a key player for Argentina. China, on the other hand, not only serves as a trading partner but also has facilitated import financing, contributing to the strengthening of Argentina’s monetary reserves through currency swaps.

However, stakeholders emphasize the importance of addressing competition conditions to prevent situations of dumping or unfair competition that could harm Argentine industries.

Various industries are closely tied to these relationships. For instance, the beef industry heavily relies on exports to China, with approximately 75% of Argentine beef exports destined for the Chinese market. Any measure directly affecting this equation could have irreversible consequences for the country’s cattle and meat production chain.

In the agricultural industry, it is seen as essential to maintain relationships and trade agreements with all purchasing countries. The Mercosur trade bloc is viewed as a critical instrument for achieving this, as it enhances geopolitical influence, making it easier to engage with countries that prioritize protectionist policies. To succeed in these global markets, there is a need to sell processed products rather than just raw materials.

Trade statistics from the latest report by the Instituto Nacional de Estadística y Censos (Indec) reveal Brazil as the primary destination for Argentine exports, with $7.742 billion in exports between January and August. The United States and China follow closely, with $3.590 billion and $3.544 billion in exports, respectively.

In terms of imports, Brazil leads the way, with $12.646 billion in imports during the same period, with China ranking second at $9.640 billion.

Argentina’s business community recognizes the critical importance of maintaining robust trade relations with Brazil and China. These two nations not only serve as primary trade partners but also contribute significantly to Argentina’s domestic production. Navigating the evolving political landscape while sustaining these crucial relationships remains a top priority for the country’s entrepreneurs and industry leaders.