Argentina reinstated grain export duties three days after lifting them
Argentina briefly suspended export duties to attract foreign currency, enabling exporters to ship quickly and hit the USD 7 billion target in just three days, Reuters reported. Duties of 26% on soybeans, 9.5% on corn, and 24.5% on soybean oil and meal were then reinstated, raising concerns over profitability, competitiveness, and policy uncertainty.
The initiative aimed to secure a rapid inflow of foreign currency to support the peso, which had come under pressure following Central Bank interventions and recent political developments. In the first days of the program, exporters rushed to ship agricultural products, allowing the government to quickly reach the USD 7 billion target. According to Reuters, the limit was achieved in just three days.
This led to the immediate reinstatement of export duties: 26% on soybeans, 9.5% on corn, and 24.5% on soybean oil and meal. The short-term suspension proved advantageous for exporters who were able to sell large volumes, but it also sparked debate among farmers and traders. On global markets, active Chinese purchases of Argentine soybeans contributed to a decline in soybean futures prices.
The return of duties raised concerns about the future of domestic prices and the competitiveness of Argentina’s agricultural sector. For many producers, it means once again facing a heavy tax burden, potentially reducing profitability. Analysts warn that such abrupt shifts in tax policy create uncertainty for long-term investment in agribusiness.
Economists note that the government’s move was intended to stabilize the currency market ahead of October’s parliamentary elections. However, the situation highlighted Argentina’s heavy reliance on agricultural exports as a key source of foreign exchange. Striking a balance between supporting domestic needs and boosting export activity remains a central challenge for the country’s economic policy.
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Source : Ukr Agro Consult
