MercoPress. South Atlantic News Agency

Argentina plays tariffs to help industry and agriculture

Argentine Economy Minister Miguel Peirano

Argentina announced Friday custom duties and tariffs to restrict imports of certain goods that are having a negative impact on its industry. Sectors benefited include tires, bicycles, foot wear, auto parts, leather goods, toys and textiles.

"They are labor intensive sectors with a significant impact for employment and investment dynamics", said Economy minister Miguel Peirano during a press conference at Government House. Previously Peirano had met with President Nestor Kirchner, cabinet chief Alberto Fernandez, Agriculture Secretary Javier de Urquiza and business leaders of the different sectors involved. "It's a clear signal for us manufacturers who keep investing in the future of Argentina and the future of our industries", said Juan Carlos Lascurain, president of the powerful Argentine Industrial Union, UIA. The decisions objective is to limit imports in sensitive sectors that have been overwhelmed by imports particularly from China. During the first half of 2007, imports expanded 24% reaching 19.4 billion US dollars double the rate of exports which in the same period totaled 24.5 billion US dollars. Argentina's trade surplus in the first six months of this year reached 5.1 billion, down from the 6.24 billion of the same period in 2006. Peirano also had good news for farmers when h announced the elimination of tariffs for the import of fertilizers which are in high demand for the booming Argentina agriculture. "Tariffs are eliminated for the import or urea and the UAN (urea and ammonia nitrate) composite, which is a way of favoring and helping the camp", said Peirano. "For specific reasons we need to eliminate tariffs to boost Argentina's farm production". The exception measure is extensive to 300.000 tons of urea and 200.000 tons of UAN, said Agriculture Secretary Javier de Urquiza. Fertilizer shortage, a consequence of the energy crisis in Argentina, was feared could have an impact on winter crops such as wheat and for summer crops such as corn, of which Argentina is one of the world's leading exporters. Argentina is forecasted to have a record cereal and oil seeds crop of over 95 million tons this coming 2007/08 season.