Argentina Lowers Beef Export Tax to Boost Foreign Sales

The Argentine government has announced a reduction in the beef export tax by 25%, lowering it from 9% to 6.75%. This move aims to promote sales to foreign markets and improve the income levels of producers and processors, thereby enhancing Argentina’s presence in international markets[1].

This decision by the libertarian President Javier Milei partly fulfills his promise to farmers to reduce and eventually abolish taxes on food commodities, of which Argentina is a significant global exporter. Interestingly, this move also signifies a rapprochement with China, a country Milei had criticized during his electoral campaign and early months in office. China remains Argentina’s main market for meat sales, accounting for 81% of Argentine beef exports[1].

The latest figures from meat exporters show that Israel takes 6% of Argentine beef sales, the United States 5%, Germany 4%, and the Netherlands 3.6%[1]. While the announcement is likely to be welcomed by most cattle breeders and meat processors in Argentina, it has drawn criticism from some quarters.

Paolo Rocca, CEO of Techint, one of Argentina’s largest global corporations, voiced concerns about the impact of China’s purchasing approach on Latin America. Rocca warned about the “primary goods no added value economies trap” that Latin American countries, including Argentina, have fallen into due to Beijing’s centralized and authoritarian policies[1]. He emphasized the need for Argentina to review its long-term strategic policies to avoid becoming overly reliant on exporting primary goods to China[1].

Despite these concerns, the reduction in export tax is expected to provide a significant boost to Argentina’s beef industry, helping it to compete more effectively in the global market.

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