Argentina Supreme Court asks Mercosur for export tax opinion

 

 

Argentina's Supreme Court has asked the southern cone common market, or Mercosur, permanent tribunal for its opinion on whether Argentina's export taxes on goods shipped to other member countries violates the trade bloc treaty.

 

Mercosur includes Brazil, Argentina, Paraguay and Uruguay, with Venezuela in the process of becoming a full member.

 

The case stems from a complaint filed by Argentina dairy producer Sancor. The company claims that the export tax of five percent imposed on dairy shipments to Brazil and Paraguay in 2002 and 2003 violated the Asuncion treaty.

 

The Supreme Court is seeking guidance on whether the taxes violate the Mercosur rules, which prevent countries from "imposing export duties on the regional trade of goods," the Court said in a press release Tuesday (Oct 6).

 

Export taxes are a key pillar of Argentine president Cristina Fernandez's economic policy.

 

Heavy duties are imposed on oil, grain, beef and dairy shipments to generate revenue and lower prices for domestic consumers.

 

Farmers have fought hard against the taxes, launching a series of crippling strikes over the past two years.