ARGENTINA

 

Historically, the agricultural sector in Argentinahas received little direct government support.  Policies in the export-oriented agricultural sector wereinfluenced by an unstable macroeconomic environment, trade restrictions onagricultural inputs and outputs, and government policies favoring industrialdevelopment and cheap supply of food to urban consumers.  In 1990, Argentina enacted economicreforms that began to stabilize the economy and created an environment morefavorable to agricultural investment, production, and exports.  However, the government still collectsexport taxes on grains, cotton, and other agricultural products, dependent ontheir level of processing.

 

Corn,Sorghum, and Wheat

 

        The export tax for corn, sorghum, and wheat was 20%in 2005.

 

Cotton

 

        Producers with 5 to 20ha (12 to 50 ac) of cotton receive some support from the provincial or countygovernments.

        Seed, fuel, ormechanical labor is supplied; repayment requirements are normallyforgiven. 

o   Some provincial governments purchase raw cotton fromsmall producers at higher than market prices with the goal of establishing aminimum price.

o   The import tariff for cotton from Non-Mercosur(Southern Common Markets) countries was 6% in 2005.

 

Rice

 

        The export tax for seed paddy rice was 5% in 2005.

 

Soybeans

        Over 95% of Argentinas soybean production isexported, either as beans, oil, or meal.

        Soybeans are assessed a 23.5% export tax.