The surprise reduction in export tariffs (DEX) on the country’s main agricultural products, announced today by Economy Minister Luis Caputo, comes at a time high volatility in international trade in agricultural raw materials, with geopolitical tensions and uncertainty about price developments.
Despite the difficulties, the major grain exporting countries do not stop involving their producers in their policy decisions. Yesterday he showed it the President of the United States, Donald Trumpwhen announcing an aid package to the farmers for $12,000 million to mitigate the impact of the trade war China. After increasing import tariffs on industrial products, the Asian giant had stopped buying soybeans from the US, its second global supplier after Brazil. Now he has resumed his purchases in small quantities and increased the price of soybeans Chicago moves in lockstep with Beijing. But the North American president calmed the citizens’ unrest with a huge checkbook. farmersone of his voter bases, which also had objections to financial aid for Argentina. This happened last September when the Minister At the urging of the country’s dollars, Caputo reduced retentions to zero, and China saw the opportunity, sending 15 ships to buy Argentine soybeans..
Although modest, the Decline of DEX Today, Argentine agriculture is on the way to equalizing competition with countries that do not punish their production with an additional tax burden.
“The announced new reduction in export tariffs will improve the competitiveness of the agro-industrial chain. Reduced tax pressure increases investments and therefore productivity, thereby consolidating productive, economic, social and environmental sustainability,” he explains. Ernesto Ambrosetti, agricultural consultant.
The expert remembers that agriculture “It is the sector of the economy that invests the most year after year, contributing six out of every ten dollars received as foreign currency.” and the reduction represents a further step “toward the definitive and gradual abolition of this distortive tax, which has retarded the sustainable development of agriculture; this measure brings the regional economy closer to the ports and expands the production frontier.”
Meanwhile, for example Santiago del SolarProducer and former chief of staff at the Ministry of Agriculture during Macri’s tenure, the decline in DEXs is good news for agriculture. “Improves the ability to pay for the purchase of more fertilizers and agricultural machinery”he explains.
However, he warns of a critical side of the announcement. “The fact that it is surprising can cause sales (of the crop) to slow down, because at every agricultural event that the president attends, such as Rural or Expoagro, there is speculation about whether he will announce a reduction in retentions and, in case of doubt, many will say: ‘I’m waiting for the sale’,” he points out.
Another aspect that is criticized is the maintenance of the tariff difference between soybeans and by-products such as flour and oil. “The 1.5% difference (in favor of by-products) does not represent a significant tax impact, but it may be.” Money that goes to the farmers“, he says. However, the industry defends this difference with the argument that it promotes the “added value” of the soybean.
Leaving this debate aside, the different percentages of DEX reduction (two points for soybeans and one point for corn) may result in a slight increase in oilseed sowing area at the expense of grains, with just over 50% of the area left for both crops, the analyst said. Javier Preciado Patino. With a DEX of 24%, a 4.3% decline in area devoted to soybeans was forecast. There is still a second-class soybean growing window that you can take advantage of.
The expert also believes that the decline in DEXs will also serve to stimulate sales of those who still had grain from the 2024/25 harvest after the few transactions currently recorded.
Whether they arrive in the summer or winter months, Farm dollars will be needed in 2026. And Milei and Caputo know it.
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