The government of Argentina raised export duties on agricultural products

Argentina's New government, which began its work on 10 December, decided to raise export duties on agricultural products, which in September 2018, was reduced by the previous government.

Published 14 December, the decree provides for the abolition of the export duty at the rate of 4 PA for each exported dollar. Instead, to increase revenues and raise funds for social programs the government introduced a 12% duty on maize, wheat, barley, sorghum and sunflower seeds, and 30% for soybean oil, meal and beans.

Experts Oil World expected that the duty on soybeans will rise to 35%, whereas for soybean meal and oil up to 20%, which would increase the volume of processing. In 2000-ies, the government of Argentina has consistently adhered to this strategy, setting export duties on soybeans at 3-5% higher than oil and meal.

With the aim of enacting a new duty rates of MSG countries from Monday 16 December to a suspended registration of export of grain and its derivatives.

Before the new government commenced work, manufacturers sharply increased sales and registration of the export duty, to avoid the higher rates.

Local analysts believe that the stop of the registration of exports will enable the government to introduce appropriate changes from the beginning of next week, and soon advanced to increase taxes.

the head of the Rural society of Argentina (SRA) Daniel PLHA in an interview with radio Mitre said that raising taxes will negatively affect grain production.

stop the export of Argentine corn, soy and by-products in the near future will lead to a slight increase in the price. However, in the long run decrease in profitability of cultivation forced farmers to reduce production of certain crops.