Argentina export tax cuts limited to organic products

Argentina will cut export taxes on soybeans, corn, and wheat, but only if they are organic, which currently represent a small fraction of the large grain producer’s crop.

The South American country’s government said that many organic and ecological products would have their export tariffs eliminated.

Organic wheat, corn, and soybeans would pay reduced rates under this scheme to encourage production and bring in export dollars.

The change may encourage some producers, although it does not affect the vast majority of grain exports, which are not classified as organic.

Argentina is the world’s largest exporter of processed soy, the second-largest corn exporter, and a major wheat producer.

“The objective is to align Argentina with the trend of the world market and increase the number of products exported with organic certification,” stated the Ministry of Economy in a statement.

Tariff cuts will include organic wines, sauces, fruits, and vegetables. Organic corn and wheat will see their rates cut from 12% to 7%, while organic soy and soy meal will experience tariff cuts to 28% and 25%, respectively, from the current 33% and 30%.

Argentina is a large producer of organics, but the segment accounts for just a fraction of its agricultural production.

Source: Money Times

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https://www.moneytimes.com.br/argentina-corta-taxa-de-exportacao-de-graos-mas-just-se-produtos-forem-organicos/

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