By The Rio Times | Created at 2025-01-24 10:49:16 | Updated at 2025-01-24 19:34:59
9 hours ago
Argentina’s government has announced significant cuts to export taxes on major agricultural products. The move aims to support farmers and stimulate the country’s crucial agricultural sector.
Economy Minister Luis Caputo revealed the changes on January 23, 2025. Soybean export taxes will drop from 33% to 26%, while taxes on soy-based products will decrease from 31% to 24.5%.
Wheat, barley, sorghum, and corn taxes will fall from 12% to 9.5%, and sunflower taxes from 7% to 5.5%. These reductions will take effect on January 27 and last until the end of June, covering most of the harvest season.
The government hopes this will encourage farmers to sell their crops promptly, potentially boosting the central bank’s dollar reserves.
Argentina Cuts Export Taxes to Boost Farm Sector. (Photo Internet reproduction)Argentina’s agricultural sector, which represented over 60% of exports in 2024, has faced challenges from drought and declining global prices. The tax cuts aim to provide relief and enhance competitiveness.
Argentina’s Agricultural Policy Shift
The decision aligns with President Javier Milei’s campaign promises to support agriculture. However, the administration must balance these cuts with maintaining fiscal stability. Caputo emphasized that the reductions would not compromise the country’s fiscal surplus.
Farming organizations have welcomed the move. Nicolás Pino, president of the Argentine Rural Society, praised the lowered export duties but stated they would continue to push for the complete elimination of these taxes.
The government also announced the removal of all export duties for regional economies, benefiting sectors such as sugar, cotton, and tobacco. This broader effort aims to stimulate various agricultural industries across the country.
These changes come as Argentine farmers face reduced yield estimates for soybean and corn crops due to unfavorable weather conditions. The tax cuts represent a temporary measure to address immediate concerns.
Meanwhile, the government is working on long-term solutions to boost Argentina’s agricultural competitiveness in global markets.
