Argentine farmers start four-day strike against increased export tax

Argentine farmers decided to carry out a four-day strike, which began on March 9, in protest against a further increase in taxes on soy exports, which rose from 30% to 33%. The government has announced that it will not meet with farmers until the end of the strike. After taking office in December last year, President Alberto Fernández announced an increase in the tax burden for soy exports from 24% to 30%, and for wheat and corn from 6.7% to 12%. It is estimated that with a 10% increase in the export tax for soybeans, the government would be able to collect an additional US$500 million, allowing it to gain a total of US$6 billion.

The representatives of the Negotiating Bureau (Mesa de Enlaces, in Castilian), the entity responsible for communicating with the government, believes that “the 10% increase in taxes from 30% to 33%, occurred in the worst scenario possible.  This is due to sustained drought, low international prices and the country’s debt being negotiated, leaving many producers unprofitable and in some cases not recovering what was invested to face the next harvest.”

The farmers’ strike was called by the Argentine Rural Confederations (CRA), Argentine Rural Society (SRA) and the Agricultural Cooperative Confederation (Coninagro), all members of the Negotiating Table. According to the Argentine press, the strike was widely accepted on the 9th, with very low cargo movement at the country’s ports. But farmers’ representatives said it was not yet time to take stock of the strike. They announced that after 96 hours of stoppage, they would hold a press conference and release the final numbers.

President Alberto Fernández said the strike was exaggerated and incomprehensible. “I don’t want to say too much, but I believe that at some point leaders will realize that this is not the way. Time will tell how society will evaluate, but I think the people feel that this strike is incomprehensible ”.

The government offered compensation to 42,000 small soy producers, who represent 74% of the producers, and 23% of the grain harvest. The idea would be to compensate small and medium-sized producers – who in the previous harvest produced up to a thousand tons of soybeans – using the funds generated from the tax hike. Although the measure pleases some of the producers, some people view it with suspicion and doubt that the government really does what it promised.

Source: Agência Brasil

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