The Dr. Héctor Arese Interview, director of the Master’s Degree in Foreign Trade and International Business of the National University of Quilmes, Argentina. Arese has visited students of Master’s Degree in International Business, MaDI, to talk about the commercial relationship between Latin America and China.
How is the commercial relationship between Latin America and China?
The relationship between Latin America and People’s Republic of China has undergone significant changes over the years, in particular, for the last 15 years. From Latin America, China was always considered an outermost country; however, it increasingly become one of the main suppliers and one of the major destination for exports of the products Latin America produces. That means, China is going to play a relevant role in the process of raising financial and others resources for Latam. During this process, it is relevant the role our industries play – Latin America industry for sure- to be able to survive against those products coming from Asia.
The transition of the Chinese Market Economy
So what’s going on with Latin America industry as there is increasing competition across Asia, specially, all products produced in China? [It is called the Asian Factory].
One of these issues is how to survive. For instance, anti-dumping duties are one of the mechanisms used. The transition to the market economy of China means that these anti-dumping duties –traditionally used as a protective measure for Latin America Market- may be subjected to changes in the near future, especially from 2016 when China following its protocol become a member of the World Trade Organization (WTO).
Antidumping major implications and rights
Those implications are relevant as there are at least 3 points authors, intellectuals and so on disagree about this topic. Why? Because there’s a big line that provides detailed legal explanation of the way China has joined WTO. Such a “derivation” could mean that the Protocol is not fully implemented as some countries believe China could still considered as a non economic market. Therefore, demonstrating antidumping duties without the need of using different proofs from the Chinese market.
There’s also another group of authors and professionals who defend the idea that is too difficult for Latin America be contrary on the role of China as a market economy as its market is growing.
In other words, Latin America will have a crucial discussion in 2015 / 2016 about the destiny of their industries taking into consideration the Chinese competition and exports and Latin America import activity.