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China shows no sign of deal on Argentine soyoil

Published 07/13/2010, 04:42 AM
Updated 07/13/2010, 04:44 AM

BEIJING, July 13 (Reuters) - Chinese officials showed no hint of striking a deal on Argentine soyoil imports on Tuesday, despite President Cristina Fernandez saying she expected to resolve the trade dispute within days.

Fenandez, who is visiting Beijing and will travel to Shanghai later in the week, said on Monday a deal would come within two or three days. [ID:nN12214427]

But later she cancelled a news conference called for Tuesday evening in Beijing.

Chinese Foreign Ministry spokesman Qin Gang, asked by Reuters about progress in the talks, gave no timeframe.

"The soybean oil import dispute is a normal problem in the trade development of the two countries. I believe with the mutual beneficial and win-win spirit, the two sides will definitely find a proper solution through friendly negotiations," he said.

He said Argentina was an important partner for China in South America.

China's quarantine bureau said in a brief statement that its head, Wang Yong, had met with Argentina's minister of agriculture, animal husbandry and fishery and talked over bilateral trade on farm products and cooperation on quarantine and inspection.

It did not mention soyoil.

Quarantine bureau officials reached by Reuters said they are not ware of any agreement with Argentina.

One trading executive with a state-owned trading house said: "We have not received any confirmation from the Chinese side (about a resolution of the issue)," despite premiums of Argentine soyoil picking up on hopes of a deal.

He said companies are still keen for soyoil from the United States, and an immediate resolution of the issue could prompt some to cancel expensive soyoil cargoes from United States.

The Chinese freeze has threatened a hard-currency earner for Argentina. Last year, the country exported 1.84 million tonnes of soyoil to China, bringing in $1.4 billion and accounting for 77 percent of Chinese soyoil imports.

(Reporting by Ben Blanchard and Niu Shuping; Editing by Ken Wills)

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