MercoPress. South Atlantic News Agency

Farmers' conflict in Argentina seems out of control

Argentine industrialists and teamsters called on Sunday for dialogue to end the farmers' massive, crippling strike which threatens to leave the main cities short of meat, dairy produce and other food staples. The protest begun ten days ago and there's no solution on sight.

Farmers are protesting the current fiscal policy of taxing exports and have anticipated no dialogue is possible until the Argentine government back steps on the latest decisions. "It's the moment for dialogue in Argentina. Everybody has to cool down and look for ways leading to a constructive dialogue", said Juan Carlos Lascurian, president of the Argentine Industrial Union (UIA) which is closely aligned with the administration of President Cristina Fernandez de Kirchner. UIA has a good relation with the Kirchner administration which supports a strong industrial policy and which farmers complain is funded with transfer of resources from the camp. Farmers have ceased shipments of livestock, grains, dairy produce and other staples to markets to protest sliding export duties which in some cases (soybeans) can reach 41%. They have also backed their protest staging highway blockades and tractor marches in cities and towns. The Teamsters union, a close ally of the government, has also called for dialogue but warned that at "at some points, unions will ask to let the truckers pass, who have nothing to do with the strike" adding that "we will avoid using any violence, but in any case, they will use it". The Teamsters boss is also the chairman of Argentina's powerful trade unions' organization, CGT (General Confederation of Workers), which experience shows can resort to violence if needed. Argentina's political opposition, the Radical Party and the Civic Coalition expressed their concerns regarding comments made by the unions and called on authorities to take concrete actions to stop any incidents from happening while expressing sympathy with an agricultural sector "being threatened for making a fair claim". The tax hike on grains, oil seeds, beef and other produce is aimed at keeping Argentina's domestic prices artificially low and ensuring domestic supplies. Because international commodity prices are so high, without the tax on exports there is little incentive to sell soybeans and grains on the domestic market. Pablo Orsolini, vice-president of the Argentine Agricultural Federation, was quoted arguing that "the government says it is not going to back down on this, but we'll see what happens if food starts to be in short supply in the supermarkets and people complain." The Argentine Agricultural Federation is not opposed to export taxes but argues that they should vary, depending on the size of the farm. "These taxes hurt large producers very little," said Orsolini. Economy Minister Martín Lousteau said last week that the export tax increase would remain in place, despite the opposition from the farmers. Meanwhile different farmers organizations keep joining the protest, the latest of which the Entre Ríos Agricultural Federation. They confirmed that they will stage roadblocks in different parts of the province, to continue the protest against the tax raise. "We're in a confrontation with the government and some of its allies" clearly alluding to the teamsters union, said the president of the Federation Alfredo De Angeli. Argentina's Interior minister Florencio Randazzo said on Sunday that with roadblocks there's no possible dialogue and insisted that farmers are enjoying "high profits" in spite of the levies. Sources from the Kirchner administration also anticipated that if the protest continues the government will again impose a ban on exports