November 2, 2006

Argentina lowers soy import tax to spur local processing

Argentina has temporarily lowered the import taxes on soy products from Brazil, Paraguay and Bolivia to spur processing of the neighbouring countries' soybeans in Argentina, according to a resolution published in the Official Bulletin.

The tax cost to import soybeans from neighbouring countries was reduced from US$9 per tonne to US$5 per tonne, according to the Rosario Cereals Exchange.

After major expansion over the past years, Argentina has excess processing capacity to convert soybeans into soyoil and soymeal for export.

Argentina hopes to take advantage of low-cost shipping down the Parana River from Paraguay and Brazil to grinding facilities near the city of Rosario, where most of Argentina's soy is processed and shipped.