Argentina’s Export Tariffs

Cindy Zimmerman 2 Comments

ifaj13-rbotDuring the IFAJ Congress, I was very surprised to learn that Argentina has export tariffs on a number of agricultural commodities, including corn and soybeans. I understand import tariffs, but export tariffs would seem to do nothing but hurt a country’s agricultural industry.

“Argentina has export taxes on almost every product that we export, but in the case of grain the taxes are really high,” said Patricia Bergero, who is an economist with the Rosario Board of Trade (Bolsa de Comercio de Rosario). By really high, she means REALLY high, especially for soybeans, which have a 35% tariff while soybean meal and oil exports are taxed at 53%. Corn and wheat are taxed at 23 to 35%. “This kind of tax is really a burden for farmers when we are facing lower prices,” she said. No kidding!

Despite the high taxes, Patricia says Argentina exports continue to boom. “In the case of corn, depending on the market year, Argentina has 20% of the market share of the world,” she said. “In the case of soybean meal and soybean oil, definitely Argentina is a leader because they have a share of 55% of the world trade.” For soybeans as a raw product, Argentina’s market share is about 15-25%.

Patricia says the export taxes have not always been so high, just since the early 2000s and farmers would definitely like to see them lowered. Early this summer, farmers actually went on strike to protest the high taxes.

Patricia was really a wealth of information about Argentina’s agricultural industry – from exports and GMOs to the nation’s policies on renewable fuels. Listen to my conversation with her here: Interview with Patricia Bergero, Rosario Board of Trade

2013 IFAJ Congress Photo Album

Coverage of the 2013 IFAJ Congress is sponsored by Novus International and Dupont Pioneer
Audio, Farming, IFAJ, International, Markets, Trade Cindy ZimmermanArgentina’s Export Tariffs

Comments 2

  1. Post
    Author
    Cindy

    I am also curious. Export tariffs are rare and Argentina has the distinction of being the leading country in the use of them. According to this very good article, http://www.usitc.gov/publications/332/journals/export_taxes_model_soybeans.pdf, the main reason for countries to use them are to generate revenue, and the Argentine government is making a bundle off them. Patricia said they hope they will some day be lowered, but that’s like asking our government to cut income taxes! The strike had no impact to date.

Leave a Reply

Your email address will not be published. Required fields are marked *