bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

moreOnThisArticles

urlAlias

commentCount

authorLocations

authors

paywallTypes

corrections

sponsorType

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

socialHeadline

headline

flag

firstTopic

glossary

flattenTypeIds

publishedDate

additionalInfoBoxes

images

image

relatedLinks

relatedNewsletters

__typename

createdDate

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

SCMP Reporter

SINCE liberalising its markets and launching economic reforms in 1990, Argentina has undergone a major transformation.

   Hong Kong is playing a supporting role in this evolution.

   Argentina's hyper-inflation - 150 per cent in 1989 - was brought down to 5.8 per cent for the 12 months ending February.

   While reining in inflation, Argentina achieved six per cent gross domestic product growth last year.

   Trading partnerships, such as those with Hong Kong, were partly responsible for this revival.

     ''The last few years of business between Hong Kong and Argentina make a convincing case for a success story,'' said Carlos R. Rubio Reyna, Argentina's Deputy Consul General and Trade Commissioner.

  ''Total trade grew from US$117 million (HK$900 million) in 1990, registered an explosive jump of 94 per cent to end at $226 million in 1991 and then soared by 80 per cent to $408 million in 1992.

  ''In 1993, it broke the $500-million mark, up 36 per cent on the previous year at $555 million. This year, we expect it to hit $650 million.''    Hong Kong recognised the importance of Argentina when the Trade Development Council (TDC) opened a permanent consultant office in Buenos Aires.

  ''Buenos Aires was chosen as the site for the TDC's first South American office, which opened in early 1993,'' said Robert Chang, TDC's manager of market development in the Americas.

  ''In its first year, the office received more than 5,400 trade enquiries from Argentine companies.''   Mr Rubio Reyna agreed the TDC's presence boosted trade.

  ''The TDC, which has organised four business delegations to the country, is now firmly established in Argentina and the benefits of knowledge in Cantonese and English which it can provide should open up further business opportunities,'' he said.

  ''For those who wish to explore the market on a more permanent basis, setting up a company is as easy as it is in Hong Kong.''    Access to the market of 33 million has improved, with tariff cuts ranging from zero for capital goods to 20 per cent for finished consumer items. Import and export quotas have been removed.

   ''The commerce and business relationship between Hong Kong and Argentina seems set for a bright future,'' said Mr Rubio Reyna.

  ''Every day, I see people coming from or going to Argentina with a business in progress.

     ''Visitor visa requirements have been dropped for BN(O) and BDTC passport holders. Those with a Certificate of Identity do need a visa, but it is routinely available on application.''   Exports and re-exports from Hong Kong to Argentina were worth more than $400 million last year, a 34 per cent rise over 1992.

  Garments, footwear, toys and small electronic and electrical appliances and watches were top sellers.

  Toys, games and sporting goods, worth $68 million in 1993, led the field by a large margin, followed by radios at $25 million.

  ''Increased demand in South America for the territory's competitively priced consumer products has made Argentina one of our fastest growing markets,'' said Mr Chang.

    Imports from Argentina last year stood at $138 million, with leather and beef forming the bulk. Finished leather was the most popular item, valued at $90.6 million, with beef sales amounting to $18 million.

   ''The Hong Kong and south China markets are sparking interest in my country and these have led to a lot of promotional activity,'' said Mr Rubio Reyna.

      ''For example, our under-secretary of agriculture recently visited the territory with a business delegation and Argentinian companies have participated in shows such as HOFEX, the Leather Fair and Food Expo.''    Hong Kong is also promoting further business.

  Mr Chang said: ''We hope to organise frequent Hong Kong business delegations to conduct product exhibitions in Argentina.

  ''During two days in Buenos Aires, the most recent such trip with 33 companies generated on-the-spot orders worth $2.94 million.'' 



Trade flow predicted to hit $5b