April 7, 2009
Argentina government, farmers to continue talks but at lower level
The Argentine government and farmers will continue to hold weekly talks to defuse a simmering conflict, but the negotiations have been downgraded to a "technical level," the Production Ministry said in a press release Monday (April 6).
Leaders of the four top farm groups are scheduled to meet with government representatives on Tuesday for the sixth in a series of meetings designed to avoid a repeat of last year's crippling farm strikes.
The farmers are pushing for a reduction in the export tax on soy, currently fixed at 35 percent.
However, the government has made it clear it's not considering such a move.
Continued talks will focus on credit for farmers, facilitating shipping documents, subsidies and other farm stimulus projects, the ministry said in a release.
Two weeks ago, President Cristina Fernandez announced the decision to share 30 percent of its soy export tax with provinces, worth some 6 billion pesos (US$1.61 billion) a year at current prices.
The move was seen as reinforcing the government's decision not to compromise on the tax rate.
Critics call it a political move to undercut the farmers' rural support with an eye on the June 28 legislative elections.
