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Argentina Revisits Export Tax Scheme

Argentina may revive a controversial tax system on grain exports, a local newspaper reported April 10, in a move that could raise tensions with farmers in one of the world’s main suppliers of grains.

A similar plan to raise taxes on soy exports in 2008 sparked nationwide farmer protests that rattled global commodity markets and hit the popularity of President Cristina Fernandez, who plans to bid for re-election in October.

“The government is working on a new tax system to stabilize the income of producers and allow the state to get some of that windfall revenue coming from the strong increase in (grain) prices,”Pagina 12, a daily known for its close contacts with government officials, said.

The government plans to send the new tax system to congress for approval, the newspaper said.

Argentina is the world’s No. 1 exporter of soyoil and soymeal and the third-largest global supplier of soybeans. It is also a major wheat supplier and the No. 2 corn provider after the United States.

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