Argentina to Introduce New Tax on Crop Exports

Argentina will place a new tax on all shipments of primary exports. This goes against the anti-tariff measures on agricultural products that President Mauricio Macri has implemented since taking office in 2015.  “We know it’s a really bad tax that goes against what we want to spur, which is more exports,” he said.  “But I ask you to understand that it’s an emergency and we need your support.”

The country’s economy had been facing rising inflation and interest rates, as well as a falling currency in recent months, a Bloomberg report said early this month.  Apart fron the economic crisis the country experienced, farmer also faced a tough year with prospects for cut in soybean crop to 36 million MT, a 37% fall from initial forecast this year, according to USDA. Argentina is the world’s third largest soybean and corn exporter and the world’s top soybean meal and oil exporter.