July 18, 2008

Argentina's soy export tax rejected by Senate

Argentina's Senate rejected the President's soy export tax Thursday morning (July 17, 2008) after approval was given by Congress.

The Senate split evenly on the vote, but Vice President Julio Cobos surprised the chamber by indicating that he would vote against the tax. Cobos is a member of the opposition Radical party, but was chosen for the President's ticket when she was running for election.

Cobos told the Senate that a law that would not solve the present conflict is useless.

The law, which mandated higher taxes for the country's soy exports, sparked months of strikes and roadblocks by Argentinean farmers, threatening the country's critical soy export.

Although the ruling party had a clear majority in the Senate, many senators from rural provinces defected, resulting in a majority in the senate which voted against the law. 

Farm leaders reacted ecstatically to the rejection of the law and expressed their firm support for the Vice President's decision.

"This is a historic victory for Federalism in the country," Argentine Agrarian Federation president Eduardo Buzzi declared.