Argentine farmers won't extend strike past this week

Argentina farmers won't extend a strike against the government agricultural taxes and policies past the original Friday deadline, top farming officials said Wednesday (September 2).

 

"We confirm that the commercialization stoppage concludes Friday (September 4)," said Mario Llambias, head of the Argentine Rural Confederations, or CRA.

 

Argentina main farming groups held a four-hour meeting Wednesday to discuss whether to extend the week-long strike which began last Friday, and stopped sales of grains and live cattle.

 

Farmers will continue with a number of nationwide protests against government taxes and policies, including a rally on Sept. 8, Llambias said.

 

Farmers are incensed by government policies designed to shield consumers from high food prices that they say eat up their profits and end up stunting production. They were pushed over the edge last week by President Cristina Fernandez veto of a bill granting tax relief to some farmers in Buenos Aires province, which was hit the hardest by last season drought.

 

Congress unanimously approved the emergency agriculture bill last week, providing at least 500 million pesos (US$130 million) in drought-relief funds. But an opposition legislator slipped in a clause suspending export taxes for farmers from districts declared "disaster zones" and cut the export taxes in half for farmers from "emergency zones" in the province of Buenos Aires.

 

The sector is also nervous after rumours circulated this week that the government was considering raising the export tax on soy from the current 35 percent. The government has denied the speculation.

 

Farmers are also upset following a congressional vote last week to extend the president power to fix export taxes for another year. The midterm vote had built expectations among farmers that the powers would be revoked.

 

Export taxes have been a constant source of friction between the government and farmers over the past two years. Farmers launched last year series of crippling strikes to protest against higher taxes, which were later rolled back by the Senate.

 

The government, however, is counting every penny. It has refused to consider tax relief as it continues to lay out heavy stimulus spending and revenue falls due to a cooling economy.

 

In addition to the heavy tax burden, farmers chafe at export limits and repeated intervention in farming markets.