Argentina’s Milei to End Temporary Grain Export Tax Cuts in June

Argentine President Javier Milei announced this Monday (April 14) that the temporary reduction of the so-called retenciones — taxes on agricultural product exports — will end in late June.

The measure, in effect since the end of January, was implemented to encourage foreign currency inflows into the country by prompting the agribusiness sector to accelerate the liquidation of U.S. dollars at a time when the Argentine peso was gaining value.

“We temporarily reduced the retenciones on traditional exports. They returned in June because we said it was temporary. So let the agricultural sector know — if they need to liquidate [exports], do it now because the taxes come back in June,” Milei said in an interview with local radio station El Observador.

At the time of the announcement in January, export tax rates were significantly lowered. The tax on soybeans dropped from 33% to 26%. The rate for soybean meal and oil was reduced from 31% to 24.5%. The retenciones on wheat and corn went from 12% to 9.5%.

The decision could impact international commodities prices such as soybeans, wheat, and corn, considering Argentina’s strategic role in the global grain trade. The country is the world’s largest exporter of soybean meal, the main wheat supplier to Brazil, and the third-largest corn exporter globally.

Milei’s statements coincided with the announcement of a new exchange rate regime, which includes the end of restrictions on individuals’ access to U.S. dollars and the adoption of a managed float with upper and lower exchange rate bands.

Source: Globo Rural

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