Argentina's Minister of Economy, Luis Caputo, announced the extension of reduced export taxes for wheat and barley until March 31, 2026. This measure, initially implemented in late January, aims to support the agricultural sector.
However, the reduced rates will not apply to soybeans, corn, sunflower, or sorghum, which will revert to higher export duties starting in July. The agricultural sector has welcomed the extension but is advocating for its expansion to include other major crops.
The temporary reduction, originally set to expire on June 30, will now cover the upcoming fine grain harvest. According to official statements, these exports and their derivatives account for approximately USD 4 billion annually, representing about 5% of the country's total exports.
The government's decision, announced via social media, clarifies that the measure will not affect soybeans, corn, sunflower, sorghum, or their by-products. These products will be subject to the export duties that were in effect in January. Previously, soybean export duties were reduced from 33% to 26%, and its derivatives from 31% to 24.5%.
The export duties for wheat were reduced to 9.5% from 12%, similar to barley, corn, and sorghum. Sunflower export duties were reduced from 7% to 5.5%. These temporary reductions for wheat and barley will be reversed starting in July.
President Javier Milei had previously indicated the intention to reinstate these duties in July. He advised the agricultural sector to expedite exports to take advantage of the temporary lower rates. The initial tax changes were implemented through Decree 38/2025, requiring exporters to liquidate 95% of the proceeds from these goods within 15 days.
Furthermore, export duties on regional economies like sugar, cotton, bovine leather, tobacco, forestry, and rice were permanently reduced to zero. These sectors generated over USD 1.1 billion in exports during 2024. The fiscal cost of this measure is estimated at approximately USD 800 million.
Agricultural organizations, such as Ciara and CEC, have expressed their support for the extension. They are urging the government to extend the reduced rates to soybeans and corn as well. These crops have a significant impact on Argentina's production and exports.