MercoPress. South Atlantic News Agency

Argentine Senate vote: end of debate or another battle?

Farmers meeting concentrates 237.000 people

Hundreds of thousands of Argentines took to the streets of Buenos Aires in support of two rival rallies on the eve of a Wednesday crucial Congressional vote on farm export taxes which has triggered a four month stand off between the government and protesting farmers.

Pro-President Cristina Fernandez de Kirchner administration demonstrators gathered at the Congress plaza while farmers and those opposed to the taxing system filled streets surrounding a monument to the north of the capital Buenos Aires. Police blocked roads to prevent the rival camps from crossing paths. According to media estimates in spite of the government's abundant display of resources, farmers and Buenos Aires residents managed a two to one turnout and moved on from their original call for a return to March 11 (when taxes were hiked) and demanded a full review of farm policy and the functioning of "federalism", that is a fairer distribution of taxes at national level. Both demonstrations were shows of strength ahead of Wednesday's Senate vote - for which pressure is mounting on a handful of undecided senators. The Lower House approved the original export tax hike with minor amendments (as was the wish of the Kirchner administration) earlier this month in an unexpectedly tight vote. Now it's the 72 Senators turn and votes are also closely and evenly divided. At their rally farm leaders urged lawmakers to vote against the tax increases, which they say will cripple rural economies. Tax revenue will remain in the central government's coffers and won't go to the provinces where corn, soy and other grains are grown, they complained. "We are here to give our support to those senators who are willing to help their country" said Mario Llambias, head of the Argentine Rural Confederation. "The government can't keep robbing the provinces". Mrs. Kirchner husband and former President Nestor Kirchner was the keynote speaker at the pro-government rally. "We will accept the Congress' decision whatever it may be because we want social peace," said Kirchner, who finished his speech minutes before the farmers' rally started several kilometers away. Kirchner called farm leaders "de-stabilizers", undermining her wife's government, comparing their protests to the 1955 and 1976 coups that led to military dictatorships. Mrs. Kirchner has said that the 1.5 billion US dollars additional revenue generated by the increased taxes on grains and oilseeds will help Argentina build hospitals and roads. However Mr. Kirchner in one of his many speeches said the money was needed to balance government spending. The sliding-scale export tax system, pegged to Chicago exchange prices, is supposed to help with re-distribution and keep food prices affordable to Argentine consumers, argues the administration. Farmers consider them confiscatory, unconstitutional and discouraging for any rural production. Farmers have anticipated that if the bill is approved in its original version, they will seek some other solution through the legal system. Furthermore since Argentina is a leading world exporter of soybean, corn, wheat and beef among other commodities, world markets will also be closely monitoring what happens in the Congressional building.