On Sunday, Argentina's President Alberto Fernandez and China’s Development Commission (CDC) signed an Memorandum of Understanding (MoU) on the Silk Road Initiative, which promotes economic cooperation through the interconnection of maritime, land, and air infrastructures.
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“Besides increasing Argentine exports to China, the MoU prompts the participation of national suppliers in US$23-billion infrastructure projects for the energy industry, water, sewerage, transport, and housing construction,” Argentine Foreign Affairs Minister Santiago Cafiero pointed out.
As part of this initiative, both parties also signed an action plan for agricultural cooperation in the 2022-2027 term and committed to expediting the conclusion of ongoing COVID-19 related health negotiations.
“Beijing and Buenos Aires will strengthen cooperation on foreign exchange swaps, which consists of the national currencies usage in bilateral trade and investment to lower costs and reduce exchange rate risk in both countries’ negotiations,” CDC President He Lifeng announced.
"With these trade exchanges, we seek to promote political dialogue, scientific, cultural, and financial cooperation, inclusive international trade and connectivity with this sister Latin American nation," he added.
Chinese authorities also indicated their willingness to study the Argentine proposal to expand the use of the International Monetary Fund's Special Drawing Rights (SDR).
Currently, China currently is the first trading partner for Argentina outside the Southern Common Market (MERCOSUR) and its second destination for agro-industrial exports. In 2021, both countries imported and exported products worth US$19.6 billion.