June 18, 2008

Argentina president to ask Congress to endorse grains export tax

Argentine President Cristina Kirchner said Tuesday (June 17, 2008) she will ask Congress to endorse a controversial grain export scheme at the heart of a three-month conflict with the farm sector.

The tax was introduced by executive resolution in March, and farmers reacted with crippling strikes which has dragged on for three months. Farmers have blocked roads, causing food shortages in cities and stalling nationwide road transport.

The sliding-scale export tax scheme sharply raised the duty on soy shipments, Argentina's principal crop.