MercoPress. South Atlantic News Agency

Argentine Senate begins Monday farm taxing system debate

Argentina's lower house of Congress finally approved on Saturday after a marathon session a controversial package of grain-export taxes that have sparked months of nationwide farm strikes and food shortages since they were first implemented in March.

The very tight 129-122 vote followed 18 hours of heated floor debate during which government legislators offered to simplify tax-refund procedures for small farmers, while opponents sought the taxes' total repeal. The Senate is scheduled to debate the measure beginning next Monday. "We're still playing in the first half'' said Argentine Agrarian Federation president Eduardo Buzzi who added that "in the second half we're going to play in the Senate and if necessary we'll go to the courts, even to the Supreme Court'' to have the new taxes repealed. Last March President Cristina Fernandez de Kirchner decreed a sliding-scale increase in export taxes on oilseeds and grains triggering months of protests from Argentina's biggest farm groups who suspended sales, blocked highways and caused sporadic food shortages. Argentina is among the world's main exporters of oilseeds and grains. Two weeks ago in an effort to win support and overcome the stand off Mrs. Kirchner sent the bill to Congressional consideration where her administration has a comfortable majority in both houses and was expecting a smooth approval. However during the protracted debate from Friday evening to Saturday midday some party members and others allies from Mrs. Kirchner's Front for Victory party openly opposed the measure, revealing new fissures in a traditionally solid political front. To start with the Kirchner administration had to yield on several points to ensure a quorum for the discussion and mid way through the debate further accepted other amendments, mainly greater compensations for small farmers. The new bill ensures compensations' system which leaves "85% of farmers" out of the original bill, said Agustin Rossi head of the Kirchner group in the Lower House. Felipe Solá a former Agriculture minister and former governor of the province of Buenos Aires headed the group of over thirty members of Congress which almost turned the vote into a defeat for the government. He was repeatedly insulted and had a fist fight with one of Congress bell boys who called him "traitor". Farmers contend the tax hike keeps them from reinvesting profits in production to meet rising demand and the sliding system curtails futures market operations and ends up being confiscatory. The Kirchner administration argues that the windfall earnings from commodities should be redistributed among Argentina's poor and should also help to keep food prices affordable for Argentine pockets. In spite of the defeat farmers said it had been an excellent "vote" and "proved that there were many corrections to be done to the original bill". "It was an excellent vote particularly when we all know the government has such an overwhelming majority", said Mario Llambias from the Agrarian Confederation. "Support from half the lower House is most gratifying, the hegemony is showing serious cracks" said Luciano Miguens from the Argentina Rural Society.