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Argentina grain exports halt as maritime pilots strike over Milei decree

From Al Jazeera · () English

Summarized and contextualized by DistantNews.

At a glance

News Sources not specified Ongoing story
  • Maritime pilots in Argentina have initiated a strike, halting operations at the country's grain ports and affecting over 45 vessels.
  • The strike protests a government decree by President Javier Milei that deregulates river navigation services, which the pilots' union fears could jeopardize jobs.
  • Argentina is a major global supplier of grains like soy, corn, and wheat, and the port disruptions pose a significant risk to international food markets.

Argentina's vital grain export sector is facing significant disruption as maritime pilots strike over a new government decree. The walkout, which began Monday, has paralyzed operations at the country's key grain ports along the Parana River, leaving more than 45 vessels unable to enter or leave. This action directly impacts one of the world's leading suppliers of agricultural products, including soy, corn, and wheat.

The strike was triggered by a decree published Friday by President Javier Milei's administration, which aims to deregulate river navigation services. The decree calls for a "new Regulation for Pilotage Services" to streamline procedures and eliminate "obsolete or disproportionate regulations." However, a union representing the maritime pilots argues that this deregulation could reduce demand for their specialized services and put their jobs at risk.

It is necessary to enact a new โ€˜Regulation for Pilotage Services for the Rivers, Ports, Waterways, and Canals of the Argentine Republicโ€™ that promotes the streamlining of procedures, the modernisation of regulatory requirements, and the elimination of obsolete or disproportionate regulations.

โ€” Argentinian President Javier MileiThe decree signed by President Milei aims to deregulate river navigation services.

Gustavo Idigoras, president of the CIARA-CEC business chamber, warned that the number of affected vessels could rise significantly if the dispute is not resolved quickly. He noted that an additional 30 ships could be added to the backlog daily. In response to the strike, Argentina's coastguard issued a notice ordering the pilots back to work, citing potential disciplinary sanctions.

The standoff highlights the critical role of these specialized pilots in navigating Argentina's complex waterways. The outcome of this dispute could have far-reaching consequences for global food markets, given Argentina's substantial contribution to the world's grain supply. The situation also comes as Argentina recently ratified the EU-Mercosur trade deal, which aims to boost trade between the blocs, making port efficiency crucial.

If this is not resolved today [Tuesday], we will be adding about 30 more ships, and so on.

โ€” Gustavo IdigorasPresident of business chamber CIARA-CEC, commenting on the growing number of affected vessels.
DistantNews Editorial

Originally published by Al Jazeera. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.