Argentina's economy minister, Fernando Vireira, said this week that Argentina would pass a bill that would be sent to Congress seeking to raise taxes on oil and soybean meal exports to 33% from the current 31 percent, as the country faces a severe fiscal deficit.
The announcement was seen as "bad news" by CIARA-CEC grain exporters and processors. A few days ago, ** said it would seek to raise the export tax on wheat and corn to 15% from the current 12%.
Argentina is the world's leading exporter of soybean meal and soybean oil. Milley's statement came as a surprise to the industry because he promised during the campaign to deregulate agriculture and agro-industrial business activities.
"We will communicate a difference in the project submitted to Congress, in which the proportion of by-products soybean meal and soybean oil is increased from 31% to 33%," said Vilera through a message on the social network X. ”
So far, ** explained that this increase will be used to abolish or reduce taxes paid by other sectors such as wine or dairy products, without telling when the bill will be submitted to the Argentine Congress.
The president of the CIARA-CEC, Guš**o Idígoras, was critical of the official decision. "The country's main export sector will be penalized by taxes**, which will severely limit foreign exchange flows and threaten industrial employment in soybeans," he said. ”。
This is very bad news for the national economy," explained the head of CIARA-CEC, which brings together companies such as Bunge (NYSE:BG), Cargill and Louis Dreyfus.
Soybean oil and soybean meal exports are Argentina's main currencies**. Last year, shipments of these two products to the country's economy totaled 185$1.9 billion.
Milley**'s statement comes against the backdrop of a severe economic crisis in Argentina, where net foreign exchange reserves are negative.
The South American country also suffers from triple-digit inflation and popular distrust of the national currency.