Agriculture will face renewed challenges in Argentina

Significance Farmers demanded the reduction amid challenges including lower international commodities prices, real currency appreciation and another drought. It is expected to have a fiscal cost of USD800mn (0.13% of GDP). Elimination of export taxes was one of President Javier Milei’s election pledges in 2023. Impacts Lower agricultural export earnings would raise exchange market pressures, threatening the recent price stabilisation process. The government will not eliminate export taxes until a sustained rise in tax revenues compensates for the impact. The vote in key agricultural provinces was crucial to Milei’s 2023 election; farmers’ woes could undermine his party’s chances this year.