President Alberto Fernández approved this Sunday the incorporation of Argentina to the Belt and Silk Roada Chinese initiative to stimulate the flow of trade and investment, and -in this way- obtained financing by more than 23 billion dollarsofficial sources reported.
The understanding was made official during the bilateral meeting that Fernández held with his counterpart. Xi Jinping in the early hours of this Sunday at the Great Hall of the People, within the framework of the international tour carried out by the Argentine president, which took him first to Russia, then to China and on Monday to Barbados.
In this way, Argentina joins the 140 countries that are already adhered to the Chinese Silk Road all over the world. The understanding is achieved within the framework of the 50th anniversary of the establishment of diplomatic relations between the two countries.
The financing will be obtained in two tranches: one already approved for 14 billion dollars under the mechanism of the Strategic Dialogue for Economic Cooperation and Coordination (Decce) and another for approximately 9.7 billion dollars, which Argentina will present in the Ad Group. Hoc created between the two countries to start the work, after joining the Strip and the Silk Road
“With this strategic decision, the national government will sign different agreements that guarantee financing for investments and works for more than 23,700 million dollarsgenerating a new milestone in the bilateral relationship that has been significantly expanded and strengthened in the last 15 years”, official sources highlighted.
As specified, this financing will be obtained in two tranches: one already approved for 14 billion dollars under the mechanism of the Strategic Dialogue for Economic Cooperation and Coordination (Decce) and another for approximately 9.7 billion dollars, which Argentina will present in the Ad Hoc Group created between the two countries to start the work, after accession to the Strip and the Silk Road.
The Decce recently held its fifth high-level meeting, in which the main infrastructure investment projects to be held in Argentina, while areas were identified to promote Chinese direct investment.
Meanwhile, in the Ad Hoc Working Group, Argentina will present a set of infrastructure works relevant to the energy sector, the water and sewage network, transport and housing constructionwhich will be discussed with the Chinese counterpart, and which add up to an amount close to 9,700 million dollars.
Specifically, the signing of the so-called Memorandum of Understanding on Cooperation in the Framework of the Initiative of the Economic Belt of the Silk Road and the Maritime Silk Road of the 21st Century was carried out between the Foreign Minister santiago cafiero Y He LifengPresident (chairman) of the National Commission for Development and Reform of the People’s Republic of China, who were negotiating throughout Saturday to close the agreement.
The Belt and Road Initiative (BRI) is aimed at promoting cooperation and connectivity between countries through two main components: one of a land (the “Silk Road Economic Belt”) and another transoceanic (the “Maritime Silk Road”).
The signing of the so-called Memorandum of Understanding on Cooperation in the Framework of the Initiative of the Economic Belt of the Silk Road and the Maritime Silk Road of the 21st Century was carried out between Foreign Minister Santiago Cafiero and He Lifeng, President (chairman) of the National Development and Reform Commission of the People’s Republic of China, who were negotiating throughout Saturday to close the agreement
The project was initially focused on Central Asia but was expanding participation to other regions and currently more than 140 countries from Africa, Asia and the Middle East, Europe, Latin America and the Caribbean, Oceania have already joined.
“The Initiative is presented as a platform to promote the flow of trade and investment, the integration of markets and open and inclusive regional economic cooperation,” they explained from the Foreign Ministry led by Cafiero.
With the aim of deepening the strategic partnership between the two countries, specific opportunities will also be discussed for promote Chinese foreign direct investment in Argentina to “expand the country’s exportable supply, work will be done to expand the participation of Argentine suppliers in infrastructure works and sanitary, phytosanitary and authorization negotiations will be accelerated for stimulate Argentine exports to China“, as stated.
Within this framework, the countries agreed to continue expanding the volume of trade and bilateral investments.
Thirteen cooperation documents
In addition to adherence to the New Silk Road, they signed thirteen cooperation documentsreferring to green development, digital economy, space area, technology and innovation, university education and cooperation, agriculture, earth sciences, public media and nuclear energy.
According to official sources, with the announced agreements, the following objectives are deepened: financing for infrastructure worksand increase in the participation of Argentine suppliers in these works and of Foreign Direct Investment (FDI) in Argentine strategic sectors, such as energy and electromobility, among others.
What’s more Argentina’s exportable supply to China and Asia increasestending to reduce the trade deficit with China, and the China’s commitment to advance in the sanitary and phytosanitary negotiations and in the authorizations for cold storage and fishing establishments.
Background
As background, the Foreign Ministry recalled that Argentina participated in the First Belt and Road Forum for International Cooperation held in Beijing in 2017, at the level of Head of State.
Then, in March 2018, China proposed signing a memorandum of understanding for cooperation under the Initiative.
Finally, during President Jinping’s state visit to Argentina -in December 2018- the Joint Declaration and the Joint Action Plan 2019-2023 stated that the comprehensive strategic partnership between the two countries extends to the relationship with the Belt and Road Initiative.
It was also specified that, in the medium term, the Memorandum seeks to obtain “concrete results that allow promoting bilateral trade in goods and services and making investments for the productive sector and for the development of technological capacities.”
