Argentina Cuts Agricultural Export Taxes Amid Drought Relief Efforts

Argentina's government has announced a temporary reduction in export taxes on key agricultural products, including soybeans, corn, and wheat, as part of President Javier Milei's commitment to support farmers facing challenges from drought and low global prices. The new tax rates will take effect on January 27 and are set to last until the end of June, with the intention of spurring immediate sales to bolster central bank dollar reserves. Economy Minister Luis Caputo emphasized that while this temporary relief is crucial, a permanent removal of these taxes is not feasible due to budget constraints. The cuts include reducing the soybean export tax from 33% to 26% and the corn tax from 12% to 9.5%. Analysts view this as a positive step amid signs of economic recovery in Argentina, which could help stabilize the country ahead of upcoming midterm elections. The government is also engaged in discussions with the International Monetary Fund regarding a new financial program to support the economy.