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1.5 Potential Trade Opportunities

Export Opportunities

Despite all the trade restrictions in force in Argentina, Hong Kong’s trade with Argentina has increased rapidly in the past few years in tandem with Argentina’s renewed economic growth and emerging production bottlenecks as a result of limited local supply of consumer goods. In 2007, Argentina was Hong Kong’s fifth largest export market in Latin America, behind Mexico, Brazil, Panama and Chile. Following dazzling growth of 786% between 2002 and 2006, Hong Kong’s total exports to Argentina expanded by another 37% in 2007.

This good export performance reflects not only Argentine consumers’ positive perception towards “made by Hong Kong” products, but also their receptiveness to Hong Kong’s product design. Besides, Argentine companies generally have more confidence in doing business with Hong Kong suppliers. They appreciate the better quality, trendier design and prompter delivery that Hong Kong companies can guarantee and offer, while they also consider Hong Kong an excellent springboard for entering the mainland market.

In addition, following the repositioning of the Argentine industrial sector amid the rebound of the Argentine economy – where domestic Argentine companies are shifting their focus onto higher-end production such as automotives and fashion – Hong Kong companies are strongly positioned to benefit from their strong edge in competitive mid-to-high-end products. Products with favourable growth potential include consumer electronics such as mobile phones and computers, televisions, home theatre equipment and in-car electronic products. Electronics and electrical products aside, toys and games, watches and clocks, apparel and footwear are also sought after in Argentina.

Hong Kong as a Platform for Sino-Argentine Trade

Trade between Argentina and China

In 2007, China (sharing 11% of the total) was ranked as Argentina’s third largest supplier, behind only Brazil (32%) and the US (11%). During the 12 months ending December 2007, Argentina’s imports from China increased 63% year-on-year, versus a 28% growth for all the other countries. 

Argentine Imports by Country, 2007

Total Imports by Selected Countries in 2007

 

 

US$ Million

% Growth 06/07

% Share in 2007

1

Brazil

14,523.0

23.6

32.5

2

US

5,264.0

23.9

11.8

3

China

5,092.9

63.1

11.4

4

Germany

2,131.3

38.0

4.8

5

Mexico

1,336.6

20.3

3.0

6

Japan

1,200.1

28.7

2.7

7

Italy

1,071.4

18.0

2.4

8

France

1,059.4

16.7

2.4

9

Paraguay

1,056.4

109.1

2.4

10

Spain

812.6

32.5

1.8

Source: INDEC

Argentine Exports by Country, 2007

Total Exports by Selected Countries in 2007

 

 

US$ Million

% Growth 06/07

% Share in 2007

1

Brazil

10,485.9

29.0

18.8

2

China

5,166.6

48.8

9.3

3

Chile

4,175.3

-5.2

7.5

4

US

4,151.3

3.2

7.4

5

Spain

2,059.4

13.0

3.7

6

Netherlands

1,796.5

24.5

3.2

7

Italy

1,386.9

26.6

2.5

8

Germany

1,221.2

8.5

2.2

9

Uruguay

1,171.7

-0.1

2.1

10

Peru

957.8

31.4

1.7

Source: INDEC

On the other hand, China surpassed the US, and became Argentina’s second largest export market in 2007, behind just Brazil. Against this backdrop, apart from selling mainland products to Argentina, Hong Kong companies can increase their contacts with Argentine companies interested in selling to China so as to capitalise on their role as the springboard between Argentina and China. Among others, food and beverage products like wine, beef, honey and honey products, in which Argentina has a competitive edge, are believed to have good potential in China.

Content provided by Hong Kong Trade Development Council
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