BUENOS AIRES, Argentina (Reuters) – Argentina’s grain trade was
paralyzed for three days last week before a crippling provision related
to the agricultural export tax was repealed.
The provision, introduced April 17, required exporters to pay export
taxes on farm goods at shipment time rather than at purchase.
Exporters argued the measure would make it impossible for them to
determine how much to pay farmers for their goods, making it difficult
for farmers to make seeding plans for the next crop.
The government introduced the tax in March to boost revenues that have
plunged during a four-year recession, a move many analysts argued would
hurt the only dynamic sector of the economy and prompt a drop in grain
and oilseed output next year.
