The Rosario Stock Exchange (BCR) said on Friday (24.8.2018) that it estimates that Argentina could export more than US$25.000 billion in grains, flours and oils next year, after a major drought reduced production in 2018.
The market said that total production for the 2018/19 cycle could exceed 130 million tonnes, 30% more than in the previous campaign.
Argentina is the world's leading exporter of soybean oil and meal and, according to official data, last year its sales represented US$12.700 billion in revenue for the country.
Impact of export tax
However, Alberto Padoán, president of the BCR, said that There is concern about the effect that the Government's decision to postpone for six months a reduction in the tax on exports of soy derivatives will have on the sector, which will equal the rate at which unprocessed beans are taxed.
"The Rosario Stock Exchange understands that the punishment to the main export complex of the national economy Not only will it not benefit anyone, but it will worsen the trade deficit., will limit the main source of foreign currency and will increase the vulnerability of the Argentine macroeconomy," said Padoán.
The country has had a trade deficit for 19 consecutive months after reporting a negative balance of US$789 million in July.
Argentina needs to increase dollar inflows and attract new investments to deal with a contraction of its economy.
Source: Reuters
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