{"id":50028909,"date":"2019-07-12T17:43:49","date_gmt":"2019-07-12T16:43:49","guid":{"rendered":"https:\/\/stage.dialogochino.net\/?p=28909"},"modified":"2023-03-12T16:53:59","modified_gmt":"2023-03-12T16:53:59","slug":"28909-would-a-paraguay-china-trade-pact-harm-the-environment","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/business\/28909-would-a-paraguay-china-trade-pact-harm-the-environment\/","title":{"rendered":"Would a Paraguay-China trade pact harm the environment?"},"content":{"rendered":"<p>Paraguay\u2019s agricultural sector reflects constantly on the need to negotiate with China. Though the two countries do not have diplomatic ties, Paraguayan meat and soy already reaches China through other countries, meaning they do not benefit as much as they could.<\/p>\n<p>Paraguay is landlocked but producers want to ship directly through members of Mercosur, the South American customs union whose other full members are Brazil, Argentina and Uruguay. The plan has gained ground recently due to US-China trade tensions and poor crop yields elsewhere that resulted from bad weather. Soy producers <a href=\"https:\/\/rurales.elpais.com.uy\/agricultura\/agricultores-piden-al-gobierno-de-paraguay-que-abra-china-para-colocar-soja\">submitted<\/a> a formal request to the government to consider a trade pact months ago.<\/p>\n<p>Paraguay&#8217;s president Mario Abdo Ben\u00edtez, <a href=\"http:\/\/spanish.xinhuanet.com\/2019-07\/03\/c_138195072.htm\">confirmed<\/a> that any deal would respect the country\u2019s formal recognition of Taiwan.<\/p>\n<p>&#8220;Mercosur is working for a free trade agreement with China. It is a proposal from Uruguay. That will be the way for Paraguay to reach that market but we will not accept breaking relations as a condition,&#8221; the president said.<\/p>\n<p>However, Paraguay\u2019s agricultural exports are associated with deforestation and high agrochemical use and scaling-up to meet Chinese demand could worsen this, civil society groups fear. They are also concerned that laws on deforestation and regulations on crop fumigation and preservation of waterways are routinely disrespected.<\/p>\n<h2>Land use change<\/h2>\n<p>Agriculture and land use change are Paraguay\u2019s <a href=\"http:\/\/dncc.seam.gov.py\/ingei\/principales-resultados\">main sources<\/a> of greenhouse gas emissions. They account for 53 and 31%, respectively, according to the Ministry of Environment and Sustainable Development (MADES).<\/p>\n<div class='block--pullout-stat block--pullout-stat--float cd-shortcode--factbox'>\n                <p class='block--pullout-stat__title'>53%<\/p>\n                <div class='block--pullout-stat__content'>\n                    <br \/>\nof Paraguay's greenhouse gas emissions come from agriculture<br \/>\n\n                <\/div>\n            <\/div>\n<p>Between August 2017 and 2018, 265,589 hectares of land changed usage, according to the <a href=\"http:\/\/www.infona.gov.py\/\">National Forestry Institute (Infona)<\/a>.<\/p>\n<p>A recent <a href=\"https:\/\/www.bancomundial.org\/es\/news\/feature\/2019\/02\/19\/una-evolucion-para-el-futuro-de-paraguay\">study<\/a> by the World Bank argued that deforestation and the current concentration of activity in the industrial agricultural sector negatively impact the country&#8217;s economy as smaller players and the integrity of its \u201cnatural capital\u201d are compromised.<\/p>\n<h2>Exporting the problem?<\/h2>\n<p>Negotiating with China is key to unlocking Paraguay\u2019s growth potential but enhanced trade must benefit Paraguay\u2019s wider population and protect the environment, according to Ram\u00f3n Fogel, a sociologist.<\/p>\n<p>&#8220;Producers have control of key public institutions. For a country that grows a lot of soy, it&#8217;s a problem. Cancer rates, infant mortality and [physical] deformities linked to direct exposure to the crop and pesticide residues that reach people through food rise from year to year,\u201d he said.<\/p>\n<p>Paraguay also exports the problem to China. &#8220;Waste is left in everything in the soy supply chain, in this case in the pork they consume,\u201d Fogel added.<\/p>\n<p>Oilseed also reaches China through <a href=\"https:\/\/www.perfil.com\/noticias\/bloomberg\/bc-argentina-se-convierte-en-importante-destino-de-soja-paraguaya.phtml\">other markets, mainly Argentina<\/a>. As of December 2018 Some 67% of Paraguay\u2019s annual exports went through the neighbouring country.<\/p>\n<p>Beef also reaches China in the same way. Larger shipments have flowed since the company Frigor\u00edfico Concepci\u00f3n <a href=\"https:\/\/www.5dias.com.py\/2019\/04\/frigorifico-concepcion-enviara-carne-a-china\/\">announced<\/a> the export Paraguayan meat to China through Bolivia, where it has an industrial plant.<\/p>\n<h2>Unsustainable use<\/h2>\n<p>Victoria Peralta, an engineer and ecologist, questions the lack of environmental thinking in Paraguay\u2019s agricultural sector.<\/p>\n<p>&#8220;Regulations for fumigations are not met, nor are weather patterns or conditions taken into account. There are soybean crops around <a href=\"http:\/\/stage.dialogochino.net\/15667-paraguays-advancing-soy-holds-back-rural-communities\/\">schools<\/a> and health centres. The <a href=\"http:\/\/www.wwf.org.py\/que_hacemos\/politicas_publicas\/deforestacion\/\">Zero Deforestation law<\/a> is not met and there is clearing even in protected areas,&#8221; she says.<\/p>\n<p>The expansion of soy on sensitive lands such as the Guaran\u00ed aquifer, one of the largest underground freshwater reserves in the world, is also a major concern.<\/p>\n<p>&#8220;The spillage of pesticides ends up contaminating the surface as well as the water courses that run off as there is no forest cover,&#8221; Peralta said.<\/p>\n<p>Soy cultivation covers 80% of Paraguay\u2019s agricultural land, mostly in the eastern region. Production grew as a result of massive deforestation and the accelerated degradation of the Atlantic Forest, of which only 13% remains, according to a report by <a href=\"http:\/\/www.wwf.org.py\/\">WWF Paraguay<\/a>.<\/p>\n<p>The <a href=\"http:\/\/stage.dialogochino.net\/25826-can-silvopastoral-farming-benefit-consumers-cattle-and-the-climate\/\">silvopastoral<\/a> livestock system, which rears cattle alongside the preservation of forests that nourish soils and offer shade, as well as designating zones for intensive crop cultivation, is a more sustainable alternative, Peralta said.<\/p>\n<h2>Trade agreement<\/h2>\n<p>As of May, soybean cultivation covers 3,736,158 hectares in Paraguay, according to national oilseeds and cereals chamber (Cappro). The country exported a total of 6,237,190 tonnes from the 2017\/2018 harvest.<\/p>\n<blockquote><p>Having no relations with China is like we do not live in the globalised world<\/p><\/blockquote>\n<p>&#8220;We have a certain production potential and more than that we cannot accommodate. We will sell what we have to China. The frontier could expand between 5 and 10%, perhaps in the [forested] Chaco,&#8221; said Dante Servi\u00e1n, president of the Itap\u00faa Agricultural Coordinating Committee.<\/p>\n<p>Servi\u00e1n\u2019s committee submitted the request to the Ministry of Agriculture and Livestock to negotiate with China. So far they\u2019ve not managed to make contact with Chinese businesses.<\/p>\n<p>&#8220;Having no relations with China is like we do not live in the globalised world,&#8221; he said.<\/p>\n<p>Following China\u2019s swine fever outbreak, Servi\u00e1n said a trade agreement would help Paraguay, which depends on agriculture, to become an important food supplier to China.<\/p>\n<p>The <a href=\"http:\/\/stage.dialogochino.net\/27724-trade-war-threatens-instability-and-deforestation-in-latin-america\/\">US-China<\/a> trade war is having an impact, Servi\u00e1n said.<\/p>\n<h2>Understanding the consumer<\/h2>\n<p>A better understanding the Asian market, the relevant authorities and their decision-making processes is sorely needed, according Gustavo Rojas of Paraguayan economics think-tank Cadep.<\/p>\n<p>Paraguay&#8217;s <a href=\"https:\/\/www.ultimahora.com\/el-paraguay-importa-china-124-veces-mas-lo-que-le-vende-n1142942.html\">trade deficit <\/a>with China is currently US$3.4 billion, equal to 17.4% of the country\u2019s entire commerce with the rest of the world.<\/p>\n<p>&#8220;Nothing prevents the government from encouraging Paraguayan producers to travel to China, facilitating their visas, and creating an easier system for Chinese investors to come to the country. There are unilateral measures that can be undertaken,\u201d Rojas said.<\/p>\n<p>For Fogel, trade must be sustainable and consist of non-GMO foods that have little impact. Nor will Chinese consumers accept foods tainted by chemical pollution.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Paraguay\u2019s agricultural sector reflects constantly on the need to negotiate with China. Though the two countries do not have diplomatic ties, Paraguayan meat and soy already reaches China through other countries, meaning they do not benefit as much as they could. Paraguay is landlocked but producers want to ship directly through members of Mercosur, the [&hellip;]<\/p>\n","protected":false},"author":50000563,"featured_media":50028913,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[758],"tags":[531,595,600],"hashtags":[],"country":[20000110,50002600],"class_list":["post-50028909","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-deforestation","tag-soy","tag-trade","country-china","country-paraguay"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v26.0) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Would a Paraguay-China trade pact harm the environment? | Dialogue Earth<\/title>\n<meta name=\"description\" content=\"Paraguay&#039;s soy and beef producers eye Chinese market amid fears more production could drive deforestation and agrochemical overuse\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dialogue.earth\/en\/business\/28909-would-a-paraguay-china-trade-pact-harm-the-environment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Would a Paraguay-China trade pact harm the environment?\" \/>\n<meta property=\"og:description\" content=\"Paraguay\u2019s agricultural sector reflects constantly on the need to negotiate with China. 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