June 11, 2008

Argentina to use grain export tax hikes for social programmes

Hikes in Argentina's grain export taxes would be used to fund social programmes, according to president Cristina Fernandez on Monday (June 9, 2008).

The hikes, which have led to months of on-and-off strikes by farmers, would fund the construction of hospitals, houses and roads.

On Sunday (June 8, 2008), Argentina's farm union leaders called on their members to end their strike to restart negotiation with the government, which has refused to negotiate unless the strikes end.

Argentina is a leading soy oil exporter, with agricultural products accounting for about half of its total exports at a value of US$55 billion.