The Government of Argentina announced the elimination of export duties on products from the cow category and pork and dairy chains, as well as a 25% reduction in withholdings for various meat chains (beef, poultry, among others).
The measures, announced by President Javier Milei at the inauguration of the 2024 Rural Exposition, aim to give greater competitiveness and predictability to a strategic productive sector for the Argentine economy.
El Decree 697 / 2024, published today (06.08.2024/32/2018) in the Official Gazette, provides for the elimination of export duties for products in the cow category (except live animals) whose coding, according to their characteristics, is A, B, C, D and E, in accordance with the provisions of Annex III of Resolution No. 60/2023. These products, whose main destination is export, were subject to withholding taxes of more than USD XNUMX million during XNUMX, an amount that from now on returns to the profitability of the bovine chain.
The Decree also establishes the elimination of withholdings for products from the pork chain, in order to provide it with greater competitiveness and international projection for a product with high global demand.
It also provides for the definitive elimination of export duties on dairy products, a tax that ranges between 4,5% and 9% and is currently temporarily suspended until June 2025. With its definitive elimination, dairy industry processes will have greater predictability to increase productivity and investments.
Finally, the Decree implements a 25% reduction in withholdings for all animal proteins, whose current rate is between 4,5% and 9%. Animal proteins constitute an added value at source to our grains and have a massive federal impact, since sheep, poultry, cattle and the rest of the Argentine exportable species are produced in all the provinces of our country.
In 2023 alone, 25% of the export duties levied on these categories amounted to more than USD 70 million. With these new measures, this amount returns to the production chain and provides competitiveness to processing at origin.
These provisions, which are part of a broader process of deregulation, lowering tariffs on agricultural inputs, opening international markets and simplifying procedures in trade control,, aim to continue removing the weight of the State from the shoulders of agricultural production, responsible for 1.2 million jobs and 63% of the total exported by Argentina.
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