MercoPress. South Atlantic News Agency

Argentine Congress faces crucial vote on grain export tax

Argentine Congress during the debate

With considerable delay Argentina's Lower House began late Friday evening to debate the controversial sliding export taxes on grains and oilseeds which triggered a three months-plus stand off between the Kirchner administration and protesting farmers.

The apparent lack of quorum for the session forced the ruling coalition's block to negotiations which began at mid morning and lasted until almost 19:00 hours well past the opening session 16:00 hours. At the heart of the problem is President Cristina Fernandez de Kirchner administration's insistence in keeping the tax bill as was originally implemented, while the opposition, dissident members from the coalition and farmers' organizations argue for significant amendments or turning the calendar back to March 11, giving Congress an additional 150 days to consider a whole package of policies for the camp and its different sectors. The bill must first undergo a general discussion followed by article by article consideration before a full house vote is taken. One vote is majority enough, with the sufficient quorum, to pass the bill to the Senate for its consideration. The Kirchner administration underlines that windfall profits from soaring agriculture commodities must be redistributed through export taxes which also help keep domestic prices accessible to "Argentine pockets". Farmers and a growing number of members of Congress believe the bill as drafted is "confiscatory" and must be modified. The Kirchner administration in numbers should have sufficient Congress members to ensure quorum and a quick approval of the bill, but reality is showing other alternatives are possible. Farmers' leaders have also warned that if the bill is approved as it was sent by the Executive, they will be unable to contain the disappointment of grass roots which in some places are already camped next to highways ready to resume blocking traffic if they consider it necessary. "If this Resolution 125 becomes law, its content remains unchanged. Farmers are most disappointed and the damage to Argentina's camp and production will continue", said Hugo Luis Biolcati, vice president of the Rural Society. "The current bill is pure cosmetics, and if ratified protests will resume", he cautioned. Biolcati also revealed that if the Congressional decision is contrary to camp's aspirations, the farmers' organizations will appeal directly to the Supreme Court.