December 16, 2019

New Argentina government increases export taxes for beef, soybeans, corn and wheat

Argentina's President Alberto Fernandez rose soybeans, soyoil and soymeal export levies to soybeans, soyoil and soymeal by 5% to 30%, boosted corn and wheat levies by 5% to 12%, and increased beef export taxes from 7% to 9%, reported Reuters.

Local producers have expected to take a hit on profits with the government looking to restructure US$100 billion in debt. These producers are already affected by the current dry spell, high financing costs and inflation.

Carlos Achetone, Argentine Agrarian Association president said members are upset as the government announced the tax hikes via decree. Producers were disappointed as the President had promised to work with them on forming new policies.

Argentina is third largest soybean and corn exporter in the world, and the number one soymeal livestock feed supplier globally.

The country is facing large maturing debts next year, including tough fiscal targets which have been agreed with the International Monetary Fund (IMF). These targets were part of Argentina's US$57 million standby loan deal agreed in 2018. The new President said the deal with the IMF will be restructured.

-  Reuters