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Argentina Agrees to Import Hyundai and for Peanuts to Reduce Trade Deficit
Argentina’s exports for imports saga continues, with South Korean car maker Hyundai agreeing to export peanuts, wine, biodiesel, and soy flour to offset the US$91 million (€64 million) it added to Argentina’s growing trade deficit in 2010. Partner company / subsidiary Kia has agreed to export white goods and plastics for their contribution.
The South American nation’s US$6 billion (€4.19 billion) trade deficit has already led to one Porsche distributor agreeing to export wine and olive products, while similar deals have been struck with carmakers Chery, GM, Peugeot-Citroen, Alfa Romeo, Mercedes-Benz, Volkswagen, Fiat and Ford.
Soaring consumer demand for foreign goods, which is up some 38% year-to-date for the January to April period, has resulted in these highly protectionist policies with the Argentine government flat out refusing imports from parties that don’t agree. An undisclosed source in the motor industry told the Financial Times:
“In December, they told us and all the other car importers to reduce imports by 20 per cent compared with 2010. [When they want to enforce things] they simply give a call to customs and say, from now on, don’t let any vehicles come in.”
Hyundai is expected to earn a surplus of US$55 million (€38 million) in 2012, thanks to the US$157 million (€110 million) deal it’s made with Argentina’s federal government in Buenos Aires.
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