MercoPress. South Atlantic News Agency

Argentine gov. looks split over farmers' conflict

Conciliatory message from Vice Pte. Cobos

The doves of the Argentine cabinet headed by vice president Julio Cobos called on farmers to give the new cabinet a chance and more time to discuss the issues which so far have stalled negotiations.

"We all have to work together; we're going to find the answers for all thinking in what is best for Argentina. We must deposit all our hopes in the new cabinet", said Julio Cobos speaking to a radio Sunday in Buenos Aires. Following a three weeks furious farmers strike triggered by a huge increase in export duties on grains and oil seeds (up to 44%), the Argentine government and farmers agreed to a month's truce during which all camp issues, besides the export duties, would be addressed. However so far and with only five days for the truce timetable, May 2, the only advance reached on beef remains frozen and a tentative approach regarding wheat is still to be defined. A solution for dairy farms was rejected by President Cristina Fernandez de Kirchner and a proposal to alleviate export taxes with special compensations was considered impractical by farmers. Last week Economy minister Martin Lousteau was sacked and replaced by an unconditional Kirchner ally Carlos Fernandez. Lousteau, picked by Mrs Kirchner actually was never able to operate as minister given the interference of Mr Kirchner and his hard core team. Apparently on his epitaph will be engraved responsibility for the export levies increase initiative and the farmers' crisis. Meantime the Argentine government seems split between the doves, who are willing to reach an understanding, and the hard core who reject any agreement and want farmers on their knees for daring staging a 21 day strike and humiliating the Kirchners administrations. The hawks are led by former president Nestor Kirchner with his two fearsome allies: Guillermo Moreno domestic commerce secretary who bullies and threatens farmers, grocers, processors, whoever dares hike prices in spite of galloping inflation, and Julio De Vido the man with the federal purse, fed with the budget surplus and who hands out funds for public works projects based on submission and political allegiance to his boss. Vice president Cobos in a conciliatory tone said "it's not good for either side to have a deadline" and praised farmers as "hard workers, good people who want good for them and the whole country". "We must not forget the economy works on expectations and feelings", he underlined. But these words are light years away from Mr. Kirchner's campaign in political rallies where he blames farmers for grassland fires that have blanketed Buenos Aires, for leaving children and old people without food during the conflict and accuse them of "greed given all the money they are making with record prices for cereals, oilseeds, beef and dairy products, and which they do not want to share with the rest of Argentines". Mrs. Kirchner's political approach to the issue has been that export levies on windfall earnings help redistribute wealth and ensure "Argentine food prices" for "Argentine consumers". Cabinet chief Alberto Fernandez who has chaired the discussions with farmers belongs to the "doves", but his credibility has worn so thin that analysts believe he could be sacked or replaced any moment. Justice and Security minister Anibal Fernandez is also in the dialogue line and said that "the camp is too important for Argentina, we must reach an accord". Farmers' leaders under great pressure and provocation from the hawks have never missed the talks and now apparently are even willing to give the new cabinet a chance, "give them more space and time to help us find a way out". Hugo Luis Biolcati called on farmers grass root organizations not to miss the opportunity of reaching an agreement, and avoid going out to the highways again next Friday when the truce will be up. "Farmers are really furious, very tired but they've not lost rationality", said Biolcati, adding that with the new minister we should take the chance of extending the deadline "possibly another four days". Biolcati praised the way farmers behaved during the three weeks with no incidents, no disruptions "which was not easy". "Now we have to convince the boys of extending the deadline and it won't be easy because they have been systematically provoked and frustrated by some government attitudes, but we'll try. And in this case as all along the four farmers organizations remain as united as the first day of the conflict" said Biolcati. Nevertheless if protests resume farmers this time they will continue blocking highways but will not impede traffic from going through. Surveys showed full support for farmers strike and protests in urban centres but strong disappointment with road blocks particularly trucks carrying food and public transport.