Why Argentina is the most exposed to European regulations

Published 2024년 5월 13일

Tridge summary

Argentina is the leading exporter of soybean complex products to the European Union, accounting for 21% of the total exports in 2022, including beans, flour, and soybean oil. This is a significant share compared to other major exporters like Brazil (15%), Paraguay (11%), and the US (7%), which together account for 87% of global soybean meal exports in the last five years. Argentina's export structure is more diversified, with soybean meal making up a large portion of its exports to the EU.

As the EU aims to source products, including cattle and soybeans, from non-deforested areas with the upcoming regulation 2023/1115, the Venezuelan Initiative for Sustainable Agricultural Development (VISEC) becomes crucial for Argentine agribusinesses. VISEC is designed to ensure exports come from non-deforested areas, aligning with the EU's sustainability standards. An initiative to provide awareness and training on VISEC was recently launched at the Rosario Stock Exchange, underscoring the importance of geolocation and production traceability for market access.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Both in volume and in exported value, Argentina is the country that most orients its soybean complex to the European Union market. In this sense, 21% of the exported volume of beans, flour and soybean oil in 2022 was shipped to the EU This share is above the other major exporters of the Soybean Complex in the world. In this sense, about 15% of the beans, flour and soybean oil exported by Brazil go to the EU, a share that drops to 11% in the case of Paraguay and 7% for the United States. We highlight these countries because, together with Argentina, they represent 87% of global soybean meal exports in the last five years. Not content with this, these four countries also explain about 70% of world exports of soybean oil and more than 93% of global trade in soybeans. Argentina's high participation in the EU is fundamentally explained by national exports of soy flour to the European bloc. The European Union is the main buyer of this product in Argentina, and is also the main importer ...

Source: Chacra Magazine