The Chinese government confirmed that ‘the implement of new health requirements for the entry of such merchandise to that country is needed’ and the government’s reaction was quick, Foreign Minister Jorge Taiana quoted the day after tomorrow, at 15, the Chinese ambassador in Buenos Aires, Gang Zeng, to tell him “the distress and concern of the Argentine government due to the measure that would affect Argentina’s exports of soybean oil destined for the Chinese market.”

China made it public through the official ‘Xinhua’ news agency, which stated that “imports of Argentine soybean oil containing residues of solvents with a level above 100 parts per million will be prevented from entering the Chinese market from Thursday (two days ago)” and that “The measure was taken to help local industries and in retaliation against Argentina, a nation that has anti-dumping measures against goods from China”

A local market source confirmed to the media that “Chinese buyers had begun yesterday to suspend and delay the operations in which they were compromised. It is uncertain the fate of the shipments that are heading towards Asian ports. ”

A delegation led by Vice President of the National Service of Agricultural Food Safety and Quality (SENASA), Carlos Paz, went to Beijing to try to solve the conflict, which has a medical excuse, but it would be commercial.

The Minister of Industry, Debora Giorgi, questioned the measure and said that “the cancel on our exports of oil seems a measure with medical arguments. It is a disproportionate action, which will not be understood by any parameter. Our oils are sold throughout the world” and that “Argentina defends itself from the unfair competition, but didn’t close imports. Today Chinese shoes are entering in our country, but at a price above the minimum export value we set in our anti-dumping measure. We are defending the national industry, the Argentine labor. ”

According to the minister “Argentina has a growing trade deficit with China that began in 2008 with $ 700 million. In 2009 reached U.S. $ 1,200 million, then when sold for U.S. $ 3,600 million and bought for U.S. $ 4,800 million. In the first two months of 2010 the deficit with China is of U.S. $ 600 million, half the annual deficit in 2009. ”

A Chinese official source told the news agency NA that “It was a policy change of the import of soybean oil, which formerly belonged to the provincial governments and now returned to the Ministry of Commerce.”

The Grain Exchange of Buenos Aires, through a statement in which they expressed their concerns, stated: “As a estimate of oil exports of soybeans to China this year it could reach U.S. $ 1,600 million. Any restrictions would put in danger that amount. The companies operate their crushing plants to a suboptimal level that affects their multimillion dollar investments made in recent years and employment. ”

And warned that “the government would record a reduction in income tax, mainly in respect of export duties, only the latter tax is at stake $ 480 million. If the country ceased to export oil to China this year, will lose revenues of U.S. $ 623 million in deductions. “