Argentina and China sign deals strengthening ties after G-20

[Judi Lynn]

Source: Associated Press


Luis Andres Henao, Associated Press
Updated 2:11 pm CST, Sunday, December 2, 2018

BUENOS AIRES, Argentina (AP) — China's president on Sunday signed new trade deals with Argentina as the Asian giant expands its growing role in Latin American economies.

Presidents Mauricio Macri of Argentina and Xi Jinping of China announced the more than 30 agriculture and investment deals during a state visit following the Group of 20 summit of leaders in Buenos Aires. The deals include an agreement to export Argentine cherries to China and an expansion of a currency swap.

China is among Argentina's top export markets, especially for agricultural commodities that are the engine of its economy. It is also one of Argentina's biggest lenders, financing about $18.2 billion in infrastructure and other projects, according to the Inter-American Dialogue, a Washington-based think tank.

"China's development benefits Argentina, our region and the world," Macri said during a ceremony at the presidential residence in the outskirts of the Argentine capital.

Read more: https://www.chron.com/news/world/article/Argentina-and-China-sign-deals-strengthening-ties-13437770.php

[sandensea]

1. This is the same Macri who used to spit in China's face in 2016,

cancelling Chinese-funded hydroelectric projects with high-handed decrees and calling their currency "colorful little paper" (the Argentine equivalent of calling something 'Monopoly money').

But after his $100 billion debt bubble popped in April, and with the economic collapse that's followed, he's been singing a different tune.

Thanks for posting this, Judi. Interesting news on both an economic and geopolitical standpoint.

[ancianita]

2. All of this is our fault for being such an asshole neighbor. We could have been Argentina's lender.

[sandensea]

5. Exactly. Instead, we're using the IMF - which is worse than nothing at all.

They have deep pockets (they've already lent Argentina $21 billion just since June - plus another $7 billion later this month).

But the problem is that IMF loans come with serious strings attached - in the form of draconian budget cuts that only worsen the ongoing recession.

And it doesn't address the real causes:

Like the Bush crisis, this Macrisis was caused by financial deregulation and a popped speculative debt bubble - not budget deficits (which Argentina has financed domestically, with no need for foreign borrowing).

Who recommended it? The IMF (plus local elites).

And the IMF's solution? Deregulate some more! And cut taxes on the rich while you're at it.

[ancianita]

8. +1 Thank you for your informative post.

[sandensea]

9. You're very welcome.

Argentina has long been a kind of canary in the coal mine for the kind of direction big business and banking (the more extreme factions anyway) want to push the world into.

Dubya and Cheeto definitely fit in that scheme as well - with results that speak for themselves.

[Achilleaze]

3. This is another big stinking FAIL from the republican misleader*

* aka republican Draft-Dodger-in-Chief

[keithbvadu2]

4. Donald's dealmaking::::: Get me out of here.

Donald's dealmaking::::: Get me out of here.

[sandensea]

7. He always forgets that it takes two to Tango

His predecessor didn't have that problem:

[Lonestarblue]

6. U.S. soybean farmers need to know that Trump has destroyed their market with China.

They keep thinking that Trump knows what he is doing with the trade war, but all he is doing is destroying markets that farmers spent years developing. China has been urging other countries to increase soybean production, which means they will need less and less of U.S. soybeans. They will make long-term commitments to other countries, leaving U.S. farmers paying for Trump’s self-imposed ignorance and destruction.

[bronxiteforever]

10. Kick and recommend for visibility. Wow GOP policy fail.