BUENOS AIRES, ARGENTINA —Argentine president-elect Maurcio Macri announced on Nov. 23 that a series of agricultural policy changes that could have a significant impact domestically and in international markets will be implemented immediately after he takes office on Dec. 10.
The most significant proposed policy changes will affect Argentina’s current export taxes, export licenses (ROEs) and other taxes. An adjustment of any of these factors could spur exports – specifically for soybeans, wheat, and corn – and lead to a significant increase in sales of Argentine agricultural commodities on the world market in the short term as producers move forward with sales that have been held up in anticipation of possible policy changes.
According to the president-elect’s agricultural advisory team and other reports, the new administration proposes the following:
1. The opening of exports and elimination of export licenses (ROEs). All export license schemes first developed in 2006 would be eliminated – most significant for corn, wheat, beef and dairy products.
2. Transparency in the domestic market, including the elimination of reference prices and maximum prices.
3. Reduction and elimination of export taxes, including the gradual reduction of export taxes for soybeans and its byproducts by 5% every year and elimination of export taxes for all other agricultural products.
4. Streamlining of all local taxes including revisions to the value-added tax.
Current Export Tax Rates for Select Commodities:
-Soybean oil, 32%
-Soybean meal, 32%
-Sunflowerseed oil, 30%
-Sunflowerseed meal, 30%