Brazilian Foreign Minister Celso Amorim on Saturday in Geneva announced that Argentina is on track in 2010 to become Brazil’s largest trade partner behind China, replacing the United States in second position. The announcement was shared at the eighth annual International Institute for Strategic Studies meeting.

Bilateral trade between the two Mercosur-member countries is projected to reach up to $34 billion by the end of this year. This comes despite trade relations between Argentina and Brazil being strained at times. Brazil has periodically been accused of using unfair non-tariff policies to favor its import-competing industries. Addressing the need for improved bilateral trade relations with Argentina, Amorim recently called for “a leap forward in [liberating] the services and investment sectors.”

Amorim will continue trade discussions during his European tour and will meet with Pascal Lamy, director general for the World Trade Organization.