Alibaba Aims to Bring Argentina's Wine and Produce to Chinese Consumers

Alibaba (BABA)  Executive Chairman Jack Ma and Argentina President Mauricio Macri signed a Memorandum of Understanding (MOU) on Tuesday in Buenos Aires as a way to open up new trade opportunities and to support merchants that are marketing products on Alibaba's e-commerce platforms. 

"This agreement strengthens trade between Argentina and China," Alibaba President Michael Evans said in the announcement. MOUs are not legally binding but are considered formal agreements. 

The MOU focuses on two areas: wine and fresh foods. Under the conditions of the partnership, Alibaba's e-commerce platforms are being declared official channels by Argentina, which happens to be the fifth-largest producer of agricultural products worldwide. "The ultimate beneficiaries will be the merchants, especially small and medium enterprises, who will gain access to unprecedented cross-border trade opportunities through Alibaba's platforms," Evans noted.

Tigress Financial Partners CIO Ivan Feinseth said Alibaba has been working to bring other countries onto its platform. "I believe this is a good business move for Alibaba," he said.  

The partnership comes at a time when the stock has been on a run, trading up nearly 55% in the past year and up nearly 35% year-to-date to $118.09 on Tuesday.