Argentina continues to deregulate local economy
Export tariffs lowered for beef and poultry
14 November 2024
1 minute read
By: Through Decree 697/2024 issued on August 6, 2024, the Argentine government reduced the export tax on all poultry products and beef, setting the export tax for poultry at 6.75%, down from the previous 9%, according to a recent US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report.
This provision is part of a broader process of deregulating the local economy by lowering tariffs on agricultural inputs, opening international markets, and simplifying procedures in commercial controls.
The new government implemented this policy to provide greater competitiveness and predictability to the agricultural industry due to its key importance to Argentine economy. However, industry contacts indicate that while this new policy trends in the right direction, Argentina still needs to modernise and eliminate many other regulations and taxes to truly become competitive in global markets. They also highlight that at current world commodity process and peso exchange rate, Argentine costs are comparatively high making it difficult to compete.
The industry also reports they are negotiating different long-term lines of credit with international banks. In order to have access to these types of credit, the country needs to be able to lower the risk, which would improve the chances to obtain credit at lower rates.
