Nicolás Pino, president of the Argentine Rural Society (SRA, by its Spanish acronym), criticized the government’s latest economic measures for the agricultural sector, which include a new exchange rate for exports, and called for a reduction in taxes for rural producers.

Pino gave a politically charged speech on Saturday at the formal opening of the 135th ExpoRural, which began on July 20. The ExpoRural is an annual event organized by the SRA where rural producers show their products and politicians are invited to talk about their proposals in front of powerful agricultural businesspeople. The event ends on July 30.

According to Pino, agricultural production is currently “stagnant, stuck and weakened,” but “a lot more could be produced” if the tax system for the sector and the macroeconomic situation changed. Eliminating export duties has traditionally been one of the main demands of the rural sector.

“The state is acting like a disloyal associate forced on us, implementing taxes which confiscate, discriminate and distort,” Pino said.

The Argentine government implemented new taxes for imports of goods and services as of July 24. It also granted a higher exchange rate for some agricultural exports, although soybeans are excluded.

During a speech he gave at ExpoRural, Economy Minister Sergio Massa also announced that as of September 1 export duties will no longer apply on regional economy products. Regional economies in Argentina include producers of traditional local products such as yerba mate, wines, citrus, rice, tea, and wood.

According to Pino, these measures do not provide predictability for business and have to do with the government’s economic needs rather than benefiting the producers.

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“We are tired of announcements that never reach the producers,” Pino said. “The agricultural sector has provided US$170 billion in export duties over the last 21 years, and the state’s answer is to attack the rural productivity with multiple exchange rates.”

“When will the day come when an outgoing government doesn’t leave the next one a minefield of problems waiting to explode? When will the day come when the upcoming government doesn’t cross their arms whining about the ‘heavy inheritance’ they received?” Pino said.

“Heavy inheritance” is a phrase first used by former President Mauricio Macri to describe the situation in which he found the government when he took office after Cristina Kirchner’s last term. It was later used by incumbent President Alberto Fernández to criticize Macri’s government.

Export duties and the elections

ExpoRural is not only an opportunity for rural producers to show their products to the public and possible investors but also for politicians to talk about their proposals regarding the agricultural sector, especially in an electoral year.

On Monday at the ExpoRural, presidential candidates Patricia Bullrich, Horacio Rodríguez Larreta (Juntos por el Cambio), Javier Milei (La Libertad Avanza), and Juan Schiaretti (Hacemos por Nuestro País) said they would eliminate export duties on agricultural products if they were voted into office. 

Massa, who is the presidential candidate for the ruling coalition Unión por la Patria, said that he would progressively reduce agricultural taxes without eliminating them. He also asked the producers to understand the need to apply certain restrictions due to the economic context.