Development Trends in Sino-Latin American Agricultural Trade and Investment
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Economic and trade cooperation in the agricultural sector is an important driving force for economic development. When it comes to market demand, resources and product mix, China and Latin America possess respective advantages and enjoy strong complementarity. As economic and trade ties are getting rapidly stronger, agricultural cooperation between China and Latin America has also ushered in a new phase. First, trade. Although the total volume of agricultural trade between China and Latin America is increasing, the composition of such trade has been imbalanced: China now faces “low exports and high imports”, as well as a relatively high concentration in terms of trade partners and products. Therefore, it still needs to further carry out the diversification of trade. Second, investment. In recent years, China’s investments in Latin America mainly went to oil, gas and mineral resources. Its capital investment in the local agricultural sector has been relatively small and is usually influenced by Latin American national agrarian policies, labor issues and environmental protection policies. In view of the disparities in terms of national actual conditions, resource endowments and investment risks among Latin American countries, as well as the tremendous difference in terms of operational capacity among Chinese companies, China will promote a more targeted and incremental agricultural investment strategy, which should be carried out step by step.