Argentine Minister Calls for Law to Predictably Reduce Export Taxes for Agriculture

Sergio Busso, the Minister of Bio-Agroindustry for Argentina's Córdoba province, is urging the national government to pass a law that would ensure predictable reductions in export taxes, commonly known as "retenciones." Busso argues that with the development of new economic drivers such as oil, mining, and energy, it is time for the agricultural sector to receive significant tax relief.

Speaking at an event organized by the Argentine Rural Federation (FAA) in Córdoba, Busso emphasized that the reduction of export taxes should become a long-term policy, rather than subject to temporary decisions. He noted that the current government has announced reductions for wheat and barley starting in June, with a schedule for soybeans, sunflowers, corn, and sorghum beginning next January.

"If we agree and have the decision to do it, let's quickly send a law to the National Congress and give certainty and security to that decision," Busso stated, advocating for legislative action to provide stability for the agricultural sector. He expressed his opposition to normalizing export taxes, stating, "I don't want to normalize retentions. We have to work for them to disappear because nobody has them."

Busso explained that historically, export taxes were maintained due to the state's fiscal needs. However, he believes the emergence of new economic engines presents an opportunity to alleviate the burden on agriculture. He pointed to the development of Vaca Muerta shale oil and gas fields, mining projects, and energy initiatives as areas that will generate new revenue streams, suggesting that the agricultural sector should no longer be a primary source of export tax revenue.

The minister also drew attention to the substantial impact of these taxes on producer profitability. He cited an example from high-productivity areas in Córdoba where a producer might pay the equivalent of 15 quintals of soybeans per hectare in export taxes, while rural property taxes represent less than one quintal. Busso also highlighted the potential of biofuels to generate investment and employment in producing provinces.