March 14, 2008

Argentina introduces flexible grain export tax on global price fluctuations

Argentine officials confirmed the implementation of new flexible export taxes on grain, which will take cue on global price fluctuations.

The new scheme is set to operate until 2011 and immediately translate into a 9.1-percentage-point rise in the export tax on soy, bringing the rate to 44.1 percent.

The measure entails a slender reduction on the rates applicable to both corn and wheat, now at 24.2 percent and 27.1 percent respectively.

Argentina's economy minister Martin Lousteau said the measure is a better means of fighting the domestic rise in food prices, while providing long-term incentives for the production of corn, wheat and soy.