Tag Archive for: Chinese Investments

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Argentina, one step away from becoming a member of the Asian Infrastructure Investment Bank

Unanimously, on September 3, the Argentine Senate approved the entry of our country to the Asian Infrastructure Investment Bank -AIIB, for its acronym in English-. All that remains is the vote of the Chamber of Deputies to make the incorporation effective.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

Argentina is one step away from becoming a member of the Asian Infrastructure Investment Bank -AIIB- since by means of a unanimous vote, 69 affirmative votes, the Argentine Senate approved the entrance of our country to the institution. Now the Chamber of Deputies needs to deal with the entry project.

Argentina’s intention to be part of the Bank dates back to the administration of Mauricio Macri, where in the first ‘One Strip and One Route for International Cooperation’ Forum held in 2017, he affirmed the country’s intention to be part of the AIIB. That same year, the AIIB Board of Directors approved Argentina’s entry into the institution.

From the region, Ecuador and Uruguay are already members of the AIIB. On the other hand, Bolivia, Chile, Peru, Venezuela and Brazil have requested access to the organization. The Senate of the latter also approved his entry, however he joined as a founding member because he is part of the BRICS and all the founding countries of this bloc enjoy that status.

The AIIB was born in 2015 at the initiative of China, but began operating in January 2016. It currently has 102 members from different regions of the world. It is a multilateral financial institution that, through investments in infrastructure, fosters sustainable economic development, creates wealth, and improves connectivity in infrastructure, promoting regional cooperation with multilateral and bilateral development institutions. The Bank’s strategy is based on the Lean, Clean and Green concept in which it seeks to be efficient, agile, ethical and respectful of the environment and social rights. In addition, the financing to the countries is carried out through public capital and private investments and its financial operations are based on granting credits, guarantees and participations.

Since it began operations, the AIIB has already financed 138 infrastructure projects, between completed projects and projects in progress. In addition, the agency’s invested capital reaches $ 31 billion, which includes approved and requested projects. The sectors in which this organization invests are energy, transportation, telecommunications, infrastructure in rural areas, agricultural development, urban development, water supply, health services, environmental protection, logistics, among others.

Joining the AIIB gives our country the possibility of accessing financing from a new multilateral organization for infrastructure works in the energy sector, transportation and urban reforms, for example. Also, SMEs and other productive sectors could access Bank financing. Finally, another point to note is that this organization provides loans at low interest rates and without economic and political conditions, unlike traditional multilateral organizations such as the IMF.

Also, the bill approved by the Senate enables the Central Bank to access up to 50 capital shares, with a value of 100,000 dollars each, according to the registration admitted by the AIIB for the incorporation of a member country. A part of these shares, specifically 40, correspond to the callable capital and the remaining shares correspond to the capital to be integrated.

The strengthening of the relationship between our country and the People’s Republic of China is intensifying and among its causes, in addition to the partial approval of Argentina’s admission to the AIIB, there is also the strengthening of the Comprehensive Strategic Association with the Asian country, the donation and provision of health supplies in the fight against Covid-19, the progress to test the Chinese vaccine in the Argentine population and the negotiations that are being carried out to make effective the entry of Argentina to the Initiative of the Route and the Silk and the construction of the fourth atomic power station. Therefore, an even stronger tightening of cooperation between the two countries is expected.

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Argentina-China: cooperate in adverse times

While cooperation as an interstate link has suffered among most countries, in the framework of the Covid-19 pandemic China and Argentina have chosen to cooperate in health matters.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

During the Covid-19 pandemic and the validity of social, preventive and compulsory isolation (ASPO), various cooperation actions were carried out in health matters between the People’s Republic of China and the Argentine Republic. In order to mitigate the adverse effects caused by the pandemic, China has cooperated with Argentina in both the public and private spheres to strengthen the national health system.

Regarding the public sphere, the cooperation emphasized donations and purchases of sanitary elements, at the national and sub-national level. In this sense, the province of Buenos Aires imported from China, for a value of 54 million dollars, 5.5 million disposable chinstraps, 300 thousand N90 chinstraps, 83 thousand goggles, 700 thousand face masks and 12 million pairs of gloves disposable. To this end, Aerolineas Argentinas carried out 32 flights to the city of Shanghai at a cost of $ 500,000 each. In the act in which the tightening of the quarantine in the Metropolitan Area of ​​Buenos Aires (AMBA) was announced, on June 26, Governor Axel Kicillof affirmed that “28 planes with sanitary supplies for his province had arrived in the country from from China”.

At the subnational level, the Chinese province of Guizhou donated medical supplies to the province of Jujuy, including a total of 9 thousand medical masks donated by the People’s Hospital of said province of China. Since 2017, both provinces have maintained a fraternal relationship within the framework of the twinning intention agreement to improve understanding, foster friendship, consolidate and develop friendly cooperation.

Likewise, the All China National Association of Journalists donated 200,000 masks to the Union of Press Workers of Buenos Aires to be delivered to union members. In this sense, Secretary General Lidia Fagale expressed that one of the central premises in the international arena of the Chinese press entity is the “deep sense of cooperation.” He also thanked “the solidary attitude of the colleagues and their repeated signs of commitment in strengthening the bilateral bond.”

On the other hand, the Ministry of Foreign Affairs, International Trade and Worship informed Fundeps, in response to a request for information made on June 30, that the Argentine Republic and the People’s Republic of China have maintained fluid contact within the framework of the fight against the Covid-19 pandemic through videoconferences; and that Chinese President Xi Jinping expressed his strong support for the measures taken by Argentina in relation to the pandemic.

The Foreign Ministry detailed that the following measures were carried out: first, negotiations were carried out through the Embassy of Argentina in China and the Consulate General and Promotion Center in Shanghai for the pertinent permits for the overflight and landing of aircraft of Aerolineas Argentinas to Shanghai in search of medical supplies, as well as the displacement of people. Secondly, the White Helmets Commission advised on the documentary procedures related to the donation of goods from abroad so that they comply with the customs regulations in force in our country.

On the other hand, the Foreign Ministry made it known that the cooperation between both countries is multi-level since it includes subnational entities, companies, institutions and other entities, which have made donations and sent supplies to various actors in our country. Within the donations and shipment of supplies are detailed: chinstraps, protective suits, protective glasses, detection tests, gloves, protection for footwear, among others.

These were assigned to the Ministry of Health, Defense, Security, provincial ministries and municipalities. In this way, the bilateral cooperation in health matters between Argentina and China reflects the growing interaction and linkage between both countries, in areas that are not only limited to trade and investment but also include a wide range of areas, such as academic, cultural , technological, health or scientific, among others. The aforementioned request made to the Argentine Foreign Ministry is part of a set of requests recently sent by Fundeps to different agencies of the national government requesting information regarding various aspects of Sino-Argentine relations and infrastructure and energy projects that have Chinese financing. In this sense, it should be noted that effective and timely access to public information is essential even in a context like the current one, marked by the pandemic.

Authors
Florence Harmitton
Mariano Camoletto
Contact
Gonzalo Roza, gon.roza@fundeps.org
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Analysis of the Second Plan Joint Action between Argentina and China (2019-2023)

The following document describes and analyzes the Second Joint Action Plan agreed between Argentina and China (2019-2023) at the G20 summit in 2018. This Plan reinforces the comprehensive strategic partnership between both States and details the actions that will be carried out carried out in different areas such as politics, trade, culture, finance, communications, among others.

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Status of the emblematic projects with Chinese financing in Argentina

China’s growing interest in financing infrastructure projects in the region has led Argentina to sign a multiplicity of cooperation agreements with this country. For this reason, we have identified a series of projects with Chinese financing which we believe are relevant for their magnitude and for the economic, social and environmental impacts they can generate. Thus, in this document, the status of the situation, amounts committed and actors involved in the selected projects considered emblematic are detailed (only spanish).

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The Role of Latin America in the Belt and Road Initiative

The objective of this document is to analyze the strategy, objectives and political motivations of the People’s Republic of China in Latin America and the Caribbean. This analysis seeks to complement the previous analysis carried out by the Regional Group on Financing and Infrastructure (GREFI) based on the Asian giant’s commercial and investment strategy in LAC, which led to the publication of “General Overview of Chinese Investments in America Latina: The cases of Argentina, Colombia, Mexico and Peru ”in 2016. The document analyzes the Chinese political strategy in LAC by analyzing the relationship framework in certain multilateral and bilateral spaces in which China is present in the Region and in which it even exercises a leadership role. And special emphasis is placed on the Belt and Road Initiative promoted by China, and the role that the LAC region has to play in it. (Only in Spanish)

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Brothers be united? Profiling of the Sino-Argentina relationship in the government of Alberto Fernández

After the Mauricio Macri government will use the acquisition of debt with multilateral credit organizations as the main source of financing for its management, prioritizing the relationship with the International Monetary Fund and the United States government, it is prudent to ask ourselves: What has been the China’s role in this scenario? How is the relationship with the Asian giant outlined in the new government of Alberto Fernández?

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

Since the consolidation of China as an influential player in the international system and one of the main economic powers, Argentina has had a relationship with ups and downs but in constant communication. The use of China as a counterweight actor against the constant influence of the United States is not a strategy used only by Argentina, but also by most of the countries in the region.

In this geopolitical scenario, China presents itself as an actor that cannot be ignored beyond the efforts of the West. However, the Mauricio Macri government slightly changed the trend that had been prevailing during the Cristina Fernández government, which could be described as almost preferential.

During the Macri government, relations with China have gone from having a strong bond to going through some ups and downs, since the beginning of the administration, the closest approach to the United States tended to a distance with China. This was reflected in the reconsideration of agreements previously signed during the previous government, which implied a pause in several projects. The guiding idea of ​​the foreign policy of the then President Mauricio Macri was “the reintegration of Argentina in the world” which involved giving a more relevant role to multilateralism. From there, the various international tours and the search for support in the world produced a departure with the Chinese giant with whom he had a very deep strategic cooperation agreement.

Faced with the exhaustion of international credit and the inevitability of the link with China, in the middle of his term, Macri resumed the dialogue interrupted for two years and continued with the stage of deepening the strategic cooperation proposed by the Fernández de Kirchner government, with the Holding of the G20 Summit in Argentina and new modified cooperation agreements were signed. By the end of the term, the relationship had already been fully resumed, which was evidenced in Argentina’s attendance at China’s main initiative in Latin America in the Strip and the route, and 16 cooperation agreements were signed between the two countries. Finally, in June 2017 Argentina is outlined as a potential non-regional member to the Asian Investment and Infrastructure Bank -AIIB- along with other Latin American States, in order to find financing for the country’s large public infrastructure works such as dams in Patagonia .

In this context, the government receives President Alberto Fernández, who is also going through an exceptional situation of public health emergency due to the COVID-19 pandemic. The truth is that, months after his administration began, Fernández had to decide who would be the Argentine ambassador to China, a decision that would indicate the course of action of foreign policy with the Asian country. Fernández’s decision was innovative since he appointed Luis María Kreckler, a career diplomat with a career in embassies such as Brazil and Germany, as Argentine ambassador to China and as political advisor to the embassy along with Sabino Vaca Narvaja, renowned political scientist of the Program of Sino-Argentine Cooperation and Linking from the National University of Lanús and academic specialist on China.

From this designation it is observed that the Fernández government seeks a balance in the relationship with China, that is, the maintenance of a strategic association with the Asian giant but without reaching full dependence. The appointment of a diplomat with a career as Kreckler may imply prudence when proposing a foreign policy strategy that generates an international balance of political interests that may be presented by political scientist Vaca Narvaja.

For his part, President Fernández has declared that China’s role in the global order is inescapable and that during his term he will seek to deepen the Comprehensive Strategic Association that could be extended to the Belt and Road Initiative.

For the moment, the incipient government of Alberto Fernández, which has barely gone through 100 days of administration, has already had to manage a national health emergency crisis by COVID-19, and an economic emergency due to the still pending negotiation with the IMF. . In this context, everything that does not qualify as an emergency is automatically displaced from the government’s priorities. However, the relationship with the Asian giant has been strengthened with the donation of medical supplies from the Chinese government to Argentina in the framework of the bi-national cooperation established in the face of the COVID-19 pandemic.

Likewise, when it comes to the People’s Republic of China, it is recognized that the symbolic has the same relevance as the economic. For what no less data has been the message contained in the input boxes from China where the famous quote by Martín Fierro written by José Hernández was found: «The brothers be united because that is the first law. Have true union at any time. « Although nuances can be expected in the relationship with the Asian giant, one thing is certain, the Alberto Fernández government is determined to strengthen the bilateral relationship, so we must wait to know at what cost it will be.

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Author

  • Florencia Harmitton

Contact

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We were present at the Conference: ‘Rethinking the role of foreign investment and the New Silk Road in Latin America’

On March 2-3, the conference on foreign investment and the New Silk Road in Latin America and the Caribbean was held on the campus of the National University of San Martín in Buenos Aires.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

On March 2 and 3, the conference ‘Rethinking the role of foreign investment and the New Silk Road in Latin America and the Caribbean‘ organized by Transnational was held on the campus of the National University of San Martín (UNSAM). Institute (TNI) and UNSAM.

Both days, exponents participated not only from Argentina, but also the presence of specialists from Chile, Bolivia, Brazil, Mexico and Peru. On the first day of the conference, issues such as the role of foreign direct investment (FDI) for sustainable development in the current context of climate crisis were addressed; FDI in Latin America, including Chinese investments and the key sectors in which they are located. In addition, the potential implications of the region for the New Silk Road were discussed.

As the main conclusions of the first day, we can mention China’s need for extractive primary resources, the main reason for its relationship with Latin America and the Caribbean. The transfer of Foreign Direct Investment (FDI) of environmental impacts to the countries of the region. Finally, the continued violation of Chinese investments to Convention 169 of the International Labor Organization (ILO) on the right to free, prior and informed consultation for indigenous peoples.

On the other hand, on the second day there was a greater exchange of opinions between the speakers and the public present, respecting the topics agreed in the Program, such as Chinese FDI in the region, specifically the characteristics, impacts and challenges they face. Latin American countries, with emphasis on Argentina, Brazil, Mexico, Bolivia and Chile. Lastly, the topics that generated the greatest exchange of opinions were the relationship FDI-sustainable development models and, on the other hand, what is the type of FDI that we want, that is, if it can contribute to national development taking into account ecological sustainability .

Regarding the second day, the questions that had great force were those regarding which pattern China follows in the different countries of the region. Thus, issues such as the growing demand for lithium by China, its association with companies from other states to obtain their technology (technology transfer), the expansion of bi-oceanic projects, hydroelectric dam projects and the increase in ecoterritorial conflicts, due to mention some.

In our region, in recent decades, Chinese investments have grown exponentially, exceeding investments by traditional multilateral organizations (such as the World Bank and IDB). With these investments comes the lack of controls, environmental and social impacts, and human rights violations. However, the asymmetric relationship that exists between the region and the Asian country cannot be overlooked, reproducing the classic unequal patterns of relationships that have characterized Latin America and the Caribbean, formerly with the United States and Europe, now with the People’s Republic from China.

Consequently, it is important to create greater articulation between civil society, academia, affected communities and all those interested parties to demand a more egalitarian form of relationship and compliance with environmental and social standards, absent so far. It is within this framework that our participation in the conference and Fundeps’ interest in strengthening ties with both national and international academic institutions that address the issue of Chinese investment and its impact on the environment and human rights are framed.

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Author

  • Sofia Brocanelli

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The role of the AIIB in the New Route of the Green Headquarters

The article proposes an approach to financing the Silk Road and the Silk Road Initiative,
trying to analyze the extent to which the recently created Asian Infrastructure Investment
Bank (AIIB) plays as a "financial engine" of the Initiative, It represents (or not) an
opportunity for the objective of greater environmental and social sustainability in the
infrastructure projects carried out within the framework of the “New Green Silk Road”.




                               

                               
                               
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Argentina continues to bet on nuclear plants with Chinese financing
The First Integrated Five-Year Plan signed between Argentina and China for Infrastructure Cooperation (2017-2021) contains 16 projects to be developed in the country. Within these are the construction of two nuclear power plants. The choice of building nuclear plants, instead of investing in wind and solar energy, raises certain concerns about the risks of nuclear energy.


“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.


The strengthening of the Sino-Argentine relationship was observed with the signing of the First Five-Year Plan (2017-2021) between the two actors, which includes 16 projects to be carried out in the country with Chinese financing. One of the projects that generates economic, but above all environmental, questions is the construction of two nuclear power plants, Atucha III and IV.


Around nuclear power plants there are opinions for and against. There are defenders of this type of energy due to low emissions, however, there is an increasing number of opponents of nuclear energy due to its impacts on the environment, the risk it means and how expensive it is in relation to wind and solar energy .


Our country has three nuclear reactors, the first, Atucha I, was built in 1974; the second plant is that of Embalse that began operating in 1984 and the third plant was Atucha II, which began operating in the national system as of 2014. Nuclear-type energy represents 6% of the country’s energy. Energy Matrix.


The agreement for the construction of two nuclear power plants dates from the government of Cristina Kirchner, who agreed to build with China in 2015. When Macri took over as president, the effectiveness of this type of energy was questioned, however it was ratified the agreement with China on the construction of nuclear power plants (Atucha III and IV). Despite this, due to the economic crisis that the country is going through, the government had to choose to build a single plant so that the size of the loan is not so large and the country can face it.


Thus, the Atucha III nuclear power plant will be built, which will add 745 megawatts to the network and will be located in the town of Lima, Province of Buenos Aires. The contract for the construction of this plant includes a loan from China for $ 10 billion, which covers 85% of construction costs; the rest will be invested by Argentina.


Initially, when the agreement was signed, the governments of both countries expressed the importance of signing the contracts before September 2017, and, consequently, begin the construction of one of the plants that same year and the second in 2019. However, none of these events happened.


This Five-Year Plan aims to increase complementarity, cooperation and benefits in the infrastructure sector, contributing to the development of bilateral economic relations and the nations of both countries.


Chinese financing has grown markedly in Latin America and the Caribbean, and Argentina has not been the exception to this growth. Relations between the two countries have evolved in such a way that China is important as a bilateral lender, where the largest amount of loans has been allocated to infrastructure and energy projects.


From Fundeps a request for information was made at the beginning of the year to the National government for the First Five-Year Plan between China and Argentina, emphasizing the construction of nuclear power plants. The main questions that were consulted were about the modalities and characteristics of the financing that the Argentine government agreed to finance the works contemplated in the First Five-Year Plan; the dependencies, officials and other actors involved.


Regarding the construction of nuclear power plants, a topic of relevance in the request for information, the state of construction of nuclear power plants was requested, what have been the social and environmental guidelines of the institutions involved in the project, which were the preselected and selected places to carry out the construction, the studies that were carried out to select the place of construction of the plants and, if there has been an environmental impact assessment (EIA) as if there were instances of citizen participation.


Although the request was answered late (July), the questions asked to the Ministry of Energy and the Ministry of Finance were not effectively answered. Just to mention some questions of the response to the request, the EIA documents were not provided, much less the studies carried out to select Lima, (province of Buenos Aires) as the place for the construction of the nuclear power plant. In general, the answers to the questions asked were brief, and most, if not all, did not provide the data requested by Fundeps.


In terms of access to information at the national level, progress has been made, as citizens can request information through the web. However, much work remains to be done in the field of open government, since the answers to the requests for information elude the root of the question being asked. Not much information is available and, neither, when requesting the responsible entities, the information that is required is obtained.


More Information



Author


Gonzalo Roza


Contact


gon.roza@fundeps.org


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We exhibited at the ALADAA National Congress about the role of the AIIB in the New Silk Road
On August 23, Fundeps participated in the ALADAA National Congress within the framework of the Global Governance area agenda on Chinese investments in Latin America.


Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic.


On August 22 and 23, 2019, the IX National Congress of ALADAA (Latin American Studies Association of Asia and Africa) Argentina “Cultures in Motion: Potentials and Challenges in Globalization. Asia and Africa from Latin America” was held in the city of Río Cuarto. Fundeps participated by presenting a paper entitled “The role of the Asian Infrastructure Investment Bank (AIIB) in the New Green Silk Road”, which was presented by the Global Governance area volunteer, Mariano Camoletto.


The article deals with the financing of the Silk Road and the Silk Road Initiative, analyzing the role of the AIIB as its financial engine. In addition, it explores whether financing through the AIIB represents a possibility of providing greater environmental and social sustainability to the projects implemented in the framework of the New Silk Road (also known as the Belt and Road Initiative), the mega project on a global scale driven by China.


The AIIB, whose headquarters is in Beijing, was created in 2015 on the initiative of China and currently has more than 100 members, among which Argentina. The bank aims to contribute to the economic and social development of Asia with a focus on sustainable infrastructure, private capital mobilization and connectivity. For its fulfillment, the AIIB has a portfolio of 100 billion dollars and the strategy is based on the Lean, Clean and Green concept through which the bank seeks to be efficient, agile, ethical and environmentally friendly.


As for the bank’s operational policies, the most important are the Environmental and Social Framework and the Accountability Mechanism. As for the first, it was approved in 2016 and its purpose is to help the bank and its clients achieve positive results of environmental and socially sustainable development in their projects, as well as expose the institutional objectives to address environmental and social risks and impacts in the projects financed by the bank. Likewise, compliance with these policies is mandatory in order to access bank financing.


As for the Bank’s Accountability Mechanism, it was launched in 2018 and is intended to receive complaints and requests from those communities or populations negatively affected by Bank-financed projects. The mechanism has two essential functions: the first one is the resolution of disputes through dialogue and understanding of the affected parties; and secondly, that of compliance review, which consists in this mechanism investigating whether the Bank has fulfilled its obligations regarding the proper application of its operational policies.


The main objective of our participation as exhibitors in this congress was to promote the foundation’s approach to the national and provincial academic community for the study of Chinese investments and initiatives (such as the AIIB) and its impact on society, which is usually reflected in infrastructure projects with potential (or real) environmental and social impacts. The joint work has the purpose of analyzing and understanding China’s socio-political and economic insertion model in Latin America and, especially, in Argentina; as well as the strategies that Latin American countries implement against this phenomenon in the framework of the Silk Road.


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Author

Mariano Camoletto


Contact

Gonzalo Roza, gon.roza@fundeps.org


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The Second Five-Year Joint Action Plan and the deepening of relations between Argentina and China
Within the framework of the G20 summit held in Argentina in 2018, the Heads of State of Argentina and China signed 30 trade and investment agreements for the next five years. These agreements are part of the Second Five-Year Joint Action Plan between the two countries.


Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic.


On December 2, 2018, Argentine President Mauricio Macri and Chinese President Xi Jinping signed thirty trade and investment agreements within the framework of the second 2019-2023 joint action plan between our country and the People’s Republic of China.


The Second Five-Year Plan, like the first, seeks to strengthen the bilateral relationship and constitutes a roadmap with actions to be carried out in a number of areas. Most of the agreements are of an economic-commercial nature and include the areas of infrastructure, investments , finance, transport, mining, energy, science and technology, tourism, South-South Cooperation and electronic commerce.


Among the agreements, one of the most important is the formalization of the exchange of currencies (swap) with the Asian country for an amount of 8,500 million dollars in addition to the existing one of 11,000 million dollars.


The agreements that were already signed at the time of the announcement of the Second Plan were the Cooperation for Integral Agricultural Development Projects in New Irrigated Areas of the National Water Plan of Argentina, the Memorandum of Understanding on environmental protection and sustainable development, and the establishment of the Confucius Institute at the University of Córdoba.


Agreements have also been signed with companies such as the “Term Sheet” between the Ministry of Finance of Argentina and the Development Bank of China (CBD) for the creation of a Fund for an estimated amount of up to USD 1,000 million, in order to finance “Working Capital”; the Framework Agreement for the Promotion of Trade in Oil Products between the Ministry of Agribusiness Government and China Grain Reserves Group Ltd. Company (SINOGRAIN).


The following agreements were signed after they were announced: the Framework Cooperation Agreement between China Export & Credit Insurance Corporation (Sinosure) and the Bank of the Argentine Nation; the Addition to the Financing Contract for the “Rehabilitation of the Belgrano Cargas Railway”; the Financing Agreement between the Ministry of Finance of Argentina and the Development Bank of China (CBD) for the Acquisition of Rolling Stock for the Roca Eléctrico Railway and, finally, the Commercial Contract between the Ministry of Transportation and the Chinese company CRCC for the recovery of the San Martín Cargas Railway (Stage I: renewal and improvement of roads).


Finally, the following agreements are found:


    

  • Agreement on the Extension of the Validity of the Memorandum of Understanding for the Establishment of a Strategic Dialogue Mechanism for Economic Cooperation and Coordination (DECCE);
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  • Agreement for the Elimination of Double Taxation with respect to Income and Property Taxes and the Prevention of Tax Evasion and Avoidance (CDI);
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  • Memorandum of Understanding for Strengthening Fiscal and Financial Cooperation;
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  • Memorandum of Understanding on the Promotion of Commercial and Investment Cooperation;
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  • Memorandum of Understanding on Strengthening Cooperation in the Infrastructure Sectors;
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  • SWAP expansion of currencies;
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  • Protocol of Phytosanitary Requirements for the Export of Argentine Fresh Cherries to China;
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  • Memorandum of Understanding on Electronic Commerce;
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  • Memorandum of Understanding on Cooperation in Trade in Services;
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  • Sanitary Protocol for the Export of Sheep and Goat Meat to China;
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  • Adaptation of the Health Protocol for the Export of Standing Horses to China;
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  • Convention between China and Argentina on preventing and combating the illicit traffic in cultural property, and the return of illegally transferred cultural property;
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  • Execution Plan for Cultural Cooperation between China and Argentina 2019-2023;
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  • Agreement on reciprocal recognition of higher education certificates;
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  • Agreement between the Chinese Academy of Social Sciences of China and the Secretariat of Science and Technology and Productive Innovation on the establishment of the virtual center of social sciences China-Argentina;
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  • Cooperation Framework Agreement between the National Radio, Film and Television Administration of China and the Federal Public Media System;
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  • Cooperation Agreement between the Media Group of China and Radio and Television of Argentina;
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  • Memorandum of Understanding on Cooperation between the National Supervisory Commission of China and the Ministry of Justice and Human Rights of Argentina;
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  • Memorandum of Understanding between the Ministry of Modernization Government and the Chinese Academy of Government.
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The interest of the Asian country to make investments in Argentina is linked to the actions that it has carried out since the last years in the Latin American region, positioning itself as one of the main investors. The First Five-Year Plan between Argentina and China meant the strengthening of ties in their bilateral relations with the aim of developing a cooperation strategy. With the Second Plan, a further step is being taken in strengthening and deepening the bilateral relationship between the two countries.


For Argentina, the agreements represent an opportunity for development in the future, however, we must be cautious about the risks and the potential negative aspects of them, which can result in excessive increases in debt, negative impacts at the socio-economic level. environmental infrastructure projects, competitiveness problems in the commercial field or even a certain tendency towards the reprimacy of the Argentine economy towards which several of the agreements point. And do not forget to add, to all this, opacity and little transparency in terms of access to information that surrounds the vast majority of these agreements, whose general aspects may come to light, but not their details and specifications As for its implementation.


More info



Author


Sofía Brocanelli


Contact


Gonzalo Roza, gon.roza@fundeps.org


 


 


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China is committed to respecting human rights in its foreign investments
On March 15, China accepted 284 of the recommendations made in its third Universal Periodic Review (UPR) before the United Nations Human Rights Council (UNHRC). These are aimed at preventing human rights violations in the field of their investments abroad. Undoubtedly, this is an unprecedented event.


“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.


The People’s Republic of China (China) undertook, before the United Nations, to respect human rights in its investments abroad. It accepted 82% of the recommendations made by dozens of countries in its third Universal Periodic Review (UPR).


The UPR is an evaluation conducted every four and a half years by the Office of the United Nations High Commissioner for Human Rights (OHCHR). It allows rating the behavior of each member state when implementing the UN human rights treaties.


Here are some of the most relevant recommendations that were accepted:


    

  1. Promote measures that guarantee that development and infrastructure projects, within and outside of their territory, are fully compatible with human rights and respectful of the environment and the sustainability of natural resources, in accordance with national and international law applicable and with the commitments of the 2030 Agenda for Sustainable Development (Ecuador);
    2. 

  2. Consider the possibility of establishing a legal framework to guarantee that the activities carried out by the industries subject to their jurisdiction do not undermine human rights abroad (Peru);
    3. 

  3. Adopt new measures on business and human rights in accordance with their international obligations and ensure that companies operating in high risk or conflict areas conduct due diligence on human rights in accordance with the Guiding Principles on Business and Human Rights (State of Palestine);
    4. 

  4. Continue to apply Chinese laws, regulations and standards, such as the Guiding Principles on Business and Human Rights, to Chinese companies that operate beyond the borders of China (Kenya);
    5. 



The Chinese delegation said that its opening to host the aforementioned recommendations “fully demonstrates China’s determination and its open and active attitude towards the promotion and protection of human rights.” However, China must inform in two years in its Mid-Term Review before the UNHRC, the progress achieved after the implementation of these recommendations. In addition, you will need to develop an action plan to ensure that your companies and investors respect the rights of local communities and the environment.


María Marta Di Paola of the Environment and Natural Resources Foundation (FARN), expressed that “this commitment should not be considered a paper promise; On the contrary, social organizations around the world must take the floor to the Chinese State, keep vigilant and report to the Chinese embassies and CDHNU when there are violations in the Chinese projects, and demand redress for the violated rights of the victims and the environment “.


It should be noted that last year the Collective on Financing and Chinese Investments, Human Rights and Environment (CICDHA) presented a report in the framework of the UPR, along with 17 other Latin American NGOs, examining 18 projects with Chinese participation in Ecuador, Peru, Bolivia, Brazil and Argentina. The report showed that Chinese companies and banks have systematically violated several rights protected by the Universal Declaration of Human Rights and other United Nations instruments.


What happened in Geneva on March 15 is an unprecedented event that must be celebrated. Likewise, it is important to remember that the results obtained must be largely attributed to the hard work done by numerous civil society organizations in the region and the world.


More information


Video: Consideration of the Universal Periodic Review outcome of China


Report: Evaluation of the Extraterritorial Obligations of the People’s Republic of China from Civil Society: Cases of Argentina, Bolivia, Brazil, Ecuador and Peru


Author


Melanie Mackenzie


Contact


Gonzalo Roza, gon.roza@fundeps.org


Agustina Palencia, agustinapalencia@fundeps.org