Argentina's Bold Move: Slashing Grain Export Taxes Amid Economic Uptick

Argentina reduces taxes on grain exports temporarily due to economic improvements. Agricultural groups pressured for tax relief due to drought and low prices. Soybean export taxes decrease from 33% to 26%, with similar reductions for corn and wheat. Libertarian government also eliminates export taxes in regional economies.

In a strategic move to support its agricultural sector, Argentina announced a temporary reduction in export taxes on grains. This decision reflects the nation's improving economic conditions, according to government statements released on Thursday.

Agricultural lobbying had intensified, demanding relief amidst a 'critical' period marked by ongoing drought and depressed crop prices. Economy Minister Luis Caputo confirmed that export taxes on soybeans and their derivatives, among others, will be cut starting Monday, continuing through June.

Under the new measures, taxes on soy exports will be reduced from 33% to 26%, while wheat and corn will see a drop from 12% to 9.5%. In addition, President Javier Milei's administration will permanently remove export taxes on regional economies, enhancing Argentina's competitive edge in global markets.

(With inputs from agencies.)