February 20, 2009

Argentina's government has invited the leaders of the country's four leading farm groups to talks, decreasing the chances of an imminent strike.

 

The leaders will meet with the Minister of Production next Tuesday to present their complaints to the government, a spokesman for the Agrarian Federation said Thursday (February 19).

 

A new farm strike in Argentina had appeared likely following a Wednesday meeting where farm group leaders expressed frustration at silence from the government in response to their request for a meeting to negotiate agricultural policy.

 

Tension is high between farmers and the government of President Cristina Fernandez. Farmers chafe at the high tax burden they bear and government policies designed to shield local consumers from rising food prices.

 

The farmers launched a series of crippling strikes and roadblocks over four months last year to protest export taxes on grains, limits on grain and beef exports, and other government intervention in agricultural markets.

 

The strikes shut down shipments from Argentina, one of the world's leading grain exporters, and caused food shortages in the cities.

 

Last Thursday, leaders of the four leading farm groups threatened to go on strike again and freeze sales of grains and other products for up to five days. They backed off the threats later in the day, saying that they would give the government another chance to negotiate.

 

Farmers are pushing for a reduction of export taxes on grains and a lifting of export limits. They have been hit hard this season by the most severe drought seen in decades.

 

The government, however, has made it clear that a reduction in export taxes isn't on the table.

 

President Fernandez said in a speech Wednesday that the export taxes were an essential part of the country's economic balance.

 

Export taxes on soy are 35 percent, while sunflower seeds carry a 32 percent tax, wheat 23 percent and corn 20 percent.

 

The export taxes will have to be discussed in the requested meeting with the government, Rural Confederation President Mario Llambias told reporters Wednesday.