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Montevideo, September 28th 2021 - 04:44 UTC

 

 

Argentine farmers on alert: government does not rule out more taxes on food exports

Friday, February 5th 2021 - 12:57 UTC
Full article 32 comments
“I do not rule out anything”, including more taxes on food exports, the Argentine president's Deputy Chief of Staff Cecilia Todesca said “I do not rule out anything”, including more taxes on food exports, the Argentine president's Deputy Chief of Staff Cecilia Todesca said

Despite a recent accord with the government regarding corn exports, Argentine farmers are again on alert following statements from officials who did not rule out the possibility of increasing taxes on food exports as part of its effort to control high inflation.

Consumer prices in Argentina rose by more than 36% last year, heaping economic problems on families also hit by a recession that started in 2018 and fallout from the COVID-19 pandemic, which completed almost a whole decade of stagflation.

“I do not rule out anything”, including more taxes on food exports, the Argentine president's Deputy Chief of Staff Cecilia Todesca said in a local radio interview on Thursday.

“We don't have that many tools and we have to use everything we have,” she added.

In recent months, international prices of soybeans and corn have reached their highest levels in years. Argentina is the world's No. 3 corn exporter and the top international supplier of soy-meal livestock feed.

Todesca said in the interview that the goal of President Alberto Fernandez administration was to dialogue with farmers and agro-exporters to find methods to avoid sharp increases in domestic food prices.

Last month the government moved to limit corn exports with the intention of lowering domestic food prices, but it ditched the plan after protests from the agricultural sector.

Growers said the limits would have weighed on investment and farm production at a time when the central bank needs export dollars to replenish its foreign currency reserves and face international debt payments.

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  • Chicureo

    During the Allende years of my country — Chile went from a net positive food exporter to a negative as we could no longer feed our population.

    At my school I remember a professor explaining that during the Irish potato famine — Irish farmers actually exported their potatoes to England during that time of starvation.

    So what's happening in Argentina?

    Simply because the national currency has been unrealistically controlled and farmers there have been over regulated and taxed to a point that the domestic market is unattractive.

    Argentina easily could feed 25% of the World if it was unbridled of taxation and regulation.

    Feb 05th, 2021 - 02:04 pm +2
  • Islander1

    Well said. Classic Beef Industry example being the number of top Arg Beef producers who have relocated in last decade or so to Uruguay- much to the benefit of Uruguayan Agriculture Exports

    Feb 06th, 2021 - 09:55 am +2
  • Chicureo

    Pugol-TTWH and Jack Bauer


    Yes, and with the Marxist’s taking over our economy in 1970 — Chile went from a net food exporter to an absolute inability to feed our own populace.

    Chile in 1973 could not feed itself when Allende was overthrown.

    With our sustained economic growth and years of political stability — our country has seen a substantia improvement in the living conditions of its population, an unprecedented reduction of poverty and dramatic progress in education, housing and health.

    Chile is the only success story of Latin American development. In the United States and throughout the world this singular success has largely been attributed to the free market, laissezfaire economic model implemented by Pinochet and his economic czars, known as “the Chicago Boys”.

    I think the MercoPress readership is tired of Teresa extolling the self imbibing her own urine as well as her perverted fixation of filthy-toilet-paper and her false valor lies about serving in the RAF in 1962.

    She needs to lay off the cheap vodka and seek counseling in frigid Canada.

    Cheers!

    Feb 10th, 2021 - 02:46 pm 0
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