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Argentina woos China to enlarge trade relations

BUENOS AIRES: President Fernando de laRua, attending New Year celebrations at the Chinese Embassy,called on Friday for expanded trade relations between Argentinaand China, the second time in a week he has raised the issue.

De la Rua and Foreign Minister Adalberto RodriguezGiavarini both took part in the embassy's celebrations,underscoring the point that Argentina, a beef, soybean and cornexporting powerhouse, wants more trade with the globe's mostpopulous nation.

"We want to widen and intensify relations between ournations in both trade and investment," De la Rua toldreporters.

For the first time ever, foreign direct investment in LatinAmerica and the Caribbean edged out that in Asia last year, at$93 billion versus $91 billion. Argentina had the greatestpercentage growth of any of those countries, according topreliminary figures released by the United Nations last week. "Growth in trade between both countries could also extendto Mercosur," Giavarini said at the embassy function.

Mercosur, the world's third largest trade bloc, groupsBrazil, Argentina, Paraguay and Uruguay. The nations have acombined population of more than 200 million people and aneconomic output of more than $1 trillion.

De la Rua's centre-left Alliance government assumed powertwo months ago, putting an end to 10 years of rule by PeronistPresident Carlos Menem, who shepherded South America's secondlargest economy through state privatisations and marketliberalisation. About a third of all Argentine exports are destined for itsnorthern neighbour Brazil, but De la Rua's administration isseeking ways to ween the export sector off"Brasil-dependencia."

Chinese Ambassador Xu Yikong presented De la Rua with amotorcycle symbolic of the bilateral ties between the twonations. The vehicle was assembled in Argentina with Chineseparts, the diplomat said. "This is not only a good example of our desires but aconcrete result of it, of the success we are reaching thanks tothe efforts of the president," Xu said.

Argentina exported $569 million worth of goods to Chinabetween January and October last year and imported $582 millionin products in the same period, Economy Ministry figures show.

De la Rua met with Chinese Vice Premier Wu Bangguo lastSunday at the World Economic Forum in Davos, Switzerland, wherethey discussed bilateral relations between the two nationssince establishing diplomatic ties 28 years ago.

Wu said China attached great importance to its links withArgentina in specific and Latin America in general, accordingto Xinhua News Agency.-Reuters