MercoPress. South Atlantic News Agency

Argentine farmers and government dig into their positions

Farmes rally at Rosario City

Argentine farmers and the government held huge separate rallies in shows of strength ahead of talks scheduled for Monday aimed at resolving a two month and a half conflict over export levies on grains and oilseeds which has expanded to demand a new farm policy.

Eduardo Buzzi, president of the Argentine Agrarian Federation and Alfredo De Angelis, a natural leader and media reference surged out of the roadblock protests, told farmers in the Sunday rally in Rosario, Argentina's soy and grains capital, to be prepared. "We are going to the dialogue table, but let's get ready to restore the picket lines", Eduardo Buzzi told the gathering of 300.000 people at the foot of Argentina's impressive monument to the National Flag on the country's most important celebration, May 25th 1810 when local patriots began the long march to break free of Spanish colonial rule. The conflict was triggered last March 11 when farmers began protesting the government's decision to impose a new variable export tax on grains and oilseeds, which according to economists represents 1.5 billion US dollars. Roadblocks in March and early April led to food shortages in Argentina's main urban areas and prompted the biggest anti-government protests since 2001. A one-month truce called April 2 expired without an accord, spurring a new round of protests this month. The new tax system levies soybeans and sunflower seeds at more than 40%, depending on market prices, compared with a previous fixed rate of 35%. President Cristina Fernandez de Kirchner has said all along that taxes on the windfall earnings because of exception international prices for commodities will curtail inflation and allow the government to redistribute wealth to poorer regions and people. The last attempt to reach an agreement collapsed last Thursday when contrary to what was expected the Argentine government told farmers representatives at the dialogue table that the taxing system would be discussed "next week". "If we are going to block the routes again, that would be the government's fault" warned Alfredo De Angeli, president of the Argentine Agrarian Federation of Entre Rios province. He also cautioned about drastic actions or reactions to the "ongoing, permanent provocations" of the Kirchner couple government that "wants to see us divided and on our knees". De Angeli added that unity and common sense was what was required. A few minutes later, President Fernandez de Kirchner spoke at a neatly organized gathering in the northern province of Salta where she travelled to celebrate the 198th anniversary of May 25th Revolution Day. In a surprisingly brief speech Mrs. Kirchner without referring specifically to the farm dispute, said the general good is more important than personal interests. "The interests of the homeland, of the country, come before those of a sector or an individual". She insisted that Argentina has changed drastically since 2003 (when her husband took office) and the economy has not ceased to grow since then and "it's essential we keep Argentina producing and distributing income". In Rosario the speakers emphasized it was time for a new farm policy, to take advantage of world opportunities for food production, but also to create a genuinely "federal Argentina" where resources were not concentrated in Buenos Aires and distributed according to adherence and loyalty, when not "total submission to the Kirchners" and their political project. "We're not going to feed the cheque book of the Kirchner government while we go broke, enough is enough", said Mario Llambias who underlined that "we didn't come to Rosario with posters. And we weren't paid to come" referring to official rallies where pro-government groups traditionally receive government funding to make banners, to bus people to the event and to feed them. According to press reports from Salta an estimated 800 buses were contracted for Mrs. Kirchner's rally which was said to have convened "150.000 people". "Argentine farmers are capable of supplying food to both the domestic and international markets" said Luciano Miguens president of the country's Rural Society. "While we are seeing a great opportunity to grow, while the world is asking us for food, there's a barrier to those opportunities'' said Buzzi: "the government is an obstacle to growth and happiness". Argentina is the world's third-largest soybean exporter behind the US and Brazil, and the second-largest corn exporter after the US. The country is also a major producer and exporter of wheat and beef.