Argentina Cuts Soy Export Tax from 33% to 26%, Eliminates Retentions, Fulfilling Milei's Promise

Jan 23, 2025, 08:20 PM

Argentina's government, led by President Javier Milei, announced a reduction in export taxes on agricultural products, fulfilling a key campaign promise to support the farming sector. Economy Minister Luis Caputo and presidential spokesperson Manuel Adorni stated that, due to a fiscal surplus, export duties on major crops will be lowered temporarily from next Monday until June 30. The export tax on soybeans will decrease from 33% to 26%, and on soybean derivatives from 31% to 24.5%. Wheat, barley, maize, and sorghum will see export taxes reduced from 12% to 9.5%, while sunflower's tax will drop from 7% to 5.5%. Additionally, export duties for regional economies will be permanently eliminated. The government aims to eventually remove export taxes entirely and attributed the ability to implement these reductions to achieving a fiscal surplus. The measure comes as the agricultural sector faces challenges such as exchange rate delays, low international prices, and drought conditions.