MercoPress. South Atlantic News Agency

Farmers' conflict: renewed dialogue and markets reopen

Argentine farmers agreed to lift the 70 days conflict as of Wednesday when discussions over export tax policy with the government, and grain markets activities will resume, although the “state of alert” remains in force.

The announcement was done in Buenos Aires Monday evening following a four hours meeting of the liaison committee of the four farmers' organizations, following several phone calls with government officials who were in permanent contact with President Cristina Fernandez de Kirchner. Farmers' protests were triggered early March when the government imposed a system of sliding export levies on grains and oil seeds which for the soybean jumped to 44%. Argentina is one of the world's three main exporters of soy. Mario Llambias president of the Rural Confederations confirmed the decision to lift the strike as of Tuesday 24:00 hours which also means market activities, particularly in grain and oil seeds, resumes Wednesday. "On Tuesday the organizations' grass roots in open meetings will discuss the latest decisions", said Llambias. "We had countless calls all over the country and there's a general outcry for rationality to continue prevailing on the farmers' side. We hope the government won't let us down because the camp wants solutions based on what was decided by the liaison committee", said Eduardo Buzzi president of the Agrarian Federation. "We want to tell our fellow farmers who are waiting for a solution that we are committed and we expect the same reciprocity from government", said Luciano Miguens head of the Argentine Rural Society, adding that "grain and oil seeds export taxes" is top priority of a long list of issues to be discussed with the Kirchner administration. The decision had been anticipated on Sunday during a speech by Mr. Buzzi and Mr. Miguens who insisted in the need for "rationality" and that the "camp was willing to dialogue at any moment any time. For camp there are no Sundays or holidays". Senator Jose Pampuro, former Defence minister and usually the Kirchners spokesperson in Congress said that the government was waiting for a gesture (end of the protest) and as soon as the strike was lifted "I'm certain dialogue with farmers will resume". Mrs. Kirchner administration sources also indicated that Economy Minister Carlos Fernandez would be participating at the Wednesday dialogue with farmers which as usual will be chaired by cabinet chief Alberto Fernandez. The apparent u turn in the Kirchner government strategy begun to be activated while the president was in Peru for the EU/Latam leaders' summit forced by mounting concern over the collapse of her public standing (down to 25%) and overwhelming public opinion (75%) for an end to the seventy days conflict. Furthermore Mrs. Kirchner was planning a national announcement next May 25th, Argentina's main national celebration but the business, bankers and manufacturing sectors cautioned they would not support any grand crusade unless farmers were also fully and willingly included. They also warned President Cristina Kirchner that in the provinces highly dependent on agriculture the economic slowdown was becoming severe and the payments chain was grinding to a halt. Last week the Central bank was forced to sell a billion US dollars in the market, the peso slipped 15% against the greenback and on the political side many governors did not turn up to the show mounted for former president Nestor Kirchner when he officially became chairman of the ruling Justicialista Party. It was precisely the governors and Catholic Church that began helping with mediating efforts and bridge building between the two sides. Farmers also confirmed for next Sunday May 25th the concentration at the foot of the Flag monument in Rosario, the soybean capital in the heartland of Argentina's rich farmland. According to Argentine political analysts if Mrs. Kirchner can manage to keep her aggressive husband far from the dispute, as apparently is happening now a solution could be worked out faster than expected. And the cohesion cement for a possible national social and economic agreement could very well Mrs. Kirchner's target of increasing Argentina's annual crop by 30% to 150 million tons in 2010/11 at the end of her four years.