Argentina Suspends All New Export Registration Plans to Raise Export Tax on Soybean and Other Commodities

The Argentine government suspended all new export registrations last week, which usually indicates that the government is planning to raise export taxes on commodities. Argentina’s Congress had previously authorized president Fernandez to raise the export tax on commodities by 3%, and it is generally expected that the export tax on soybeans will be raised to 33% from the current 30%.

Since the buyers no longer offer purchase prices, Argentine grain trading is suspended because they do not know whether export taxes will increase or how much. If taxes increase, exporters usually offer grain producers lower prices to offset the increase in tariffs.