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Argentina Will Not Cut Soy Export Tax Until 2018

Budget headwinds are causing Argentina to reverse its decision to reduce its soybean export tax.

After taking office in December 2015 Argentina’s newly elected president, Mauricio Macri, eliminated the country’s corn and wheat exports taxes and cut soybean export taxes from 35 percent to 30 percent with further cuts planned for the rest of 2016.

However, effect from an ongoing recession in the country are raising concerns that budget targets will be met, and have caused the administration to adjust its plans. Moving forward, the country will reduce the soy export tax by 0.5 percent per month beginning in January 2018 through December 2019.


The plan will also include a five percent rebate to producers in northern provinces to mitigate their higher transportation costs, however this rebate will not be extended to growers in the country’s main soy producing region.

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