MercoPress. South Atlantic News Agency

President Kirchner tries to cope with Congress dissidence

The administration of Argentine President Cristina Fernandez de Kirchner is finding it increasingly difficult to retain the congressional majority which should ensure the approval of the sliding export taxes on grains and oilseeds, as sent by the Executive, and which triggered a 103 day conflict with farmers.

According to Argentine press reports former president Nestor Kirchner was on the phone with several members of the Lower House who are not willing to follow the Casa Rosada instructions. It is estimated that forty loyal Kirchner deputies are having second thoughts and would support introducing amendments to the draft or even help in re-writing viable alternatives. The Kirchners position is that the original sliding percentages scale (from Resolution 125 and which range over 44%)) must be respected, but the government is willing to accept a system of reimbursements, compensations and subsidies for smaller farmers. But this flexibility is considered not enough by the four farmers' representatives who led the 103 day stand off and who insist in the elimination of the sliding export taxes system and a return to March 11, before addressing a long list of camp issues and grievances. The former president believes that accepting changes in the sliding export taxes system would be a political defeat and therefore his short leash monitoring of the government's congressional block. Cabinet chief Alberto Fernandez, Interior minister Florencio Randazzo, Justice Minister Anibal Fenandez and the Legal Secretary of the Executive Carlos Zannini have also been strongly lobbying for government among legislators. However it's not clear how effective these pressures really are. Farmers are also lobbying inside Congress and particularly at the hearings of the Agriculture and Budget Lower House committee that is considering the controversial Resolution 125. Furthermore and even more damaging for the Kirchners position the Buenos Aires province block which is the main support of the government has suffered a splinter and a former governor and former Agriculture Minister, with presidential aspirations, Felipe Solá and a group of Deputies are drafting an alternative bill. They are also in contact with former caretaker President Eduardo Duhalde who in 2003/03 catapulted the then governor of Patagonian province Santa Cruz Nestor Kirchner as presidential candidate. Mr. Kirchner once in office broke away from Mr. Duhalde and has been accusing him of conspiring against the Cristina Fernandez de Kirchner administration. Meantime the Agriculture and Budget committee after a whole day of hearings (and parallel negotiations in corridors) adjourned until Friday. The Buenos Aires press reveals that the growing consensus in the committee is that resolution 125 should be replaced by a bill taking the export taxes to the levels of March 11 in the range of 35%. Furthermore the opposition is pushing for a vote on the special emergency powers granted to the Kirchner administration which enables it to rule fiscally with virtually no Congressional impediments supported by an ample majority of votes, which now have become very doubtful. The Kirchner administration argues that the sliding export taxes are a formidable weapon for the redistribution of the windfall earnings from soaring grain and oilseed international prices. They also argue it helps to keep food prices accessible to Argentine consumers. Argentina is among the world's main exporters of soybeans, corn, wheat and beef, among other commodities.