Jan 23, 2025
Groups Petition Milei to Eliminate Argentina's Export Taxes
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
Four agricultural groups in Argentina petitioned the government of Javier Milei last week to lower or eliminate export taxes on grain exports to aid farmers suffering from drought and low commodity prices. Argentina is a large producer of soybeans and corn and has suffered from a lack of rainfall since mid-December.
The petition came one day after the Rosario Grain Exchange lowered their estimate of the 2024/25 corn production to 48 million tons and indicated that the soybean production will be lower than initially expected.
Current export taxes in Argentina are 33% for soybeans, 31% for soybean meal, 31% for soybean oil, 12% for corn, and 12% for wheat.
Milei was elected in late 2023 with significant support from the agricultural community due to his promise to eliminate the export taxes. He has since indicated that elimination of the taxes are not possible due to economic difficulties in Argentina. Agricultural exports are a main source of income for the Argentine economy and a significant source of revenue for the federal government. The government has made significant progress controlling inflation which declined drastically in 2024 but still finished 2024 above 100%.
The petitioning groups included the Argentina Rural Society (SRA), the Agriculture Federation of Argentina (FAA), the Rural Confederations of Argentina (CRA), and CONINAGRO.