Rural producers drove a tractor to Plaza de Mayo in downtown Buenos Aires this Saturday (23) to protest against the government’s intentions to increase export taxes and economic policies in general.
Armed with Argentinian flags and antigovernment placards, producers and workers shouted antirural and antiinflation slogans that yielded no results. Groceries are up 7.8% in the last month and annual inflation is at 50%.
Hundreds of people on foot, not directly connected to the camp, joined the protest, which drew thousands of people.
Producers are complaining about existing export taxes, government threats to halt exports of some products such as wheat and meat to “combat domestic inflation” and “to ensure domestic market supplies” and the duality of exchange rates .
In fact, Argentina currently has seven different dollar denominations, and those who want to import and export have to work with the official denomination, while prices are rising at the same time. In addition, 170 different taxes apply to a wide variety of production activities related to export.
In his recent speeches, President Alberto Fernández said the country was “at war on inflation”. In practice, protectionist measures that failed to contain prices have increased.
One of the posters read, “A country with fewer taxes, just spend less and do something else.”
The final straw for the protest came in recent days when the government raised DEX (export tariffs) on soy flour and oil by two percentage points to equate to 33% of the rate paid on the grain.
Economy Minister Martín Guzmán said there are currently no plans to increase the DEX (also known as withholding) for wheat and corn. But rumors that even he isn’t guaranteed a seat in the post are fueling even more suspicion in the market.
Current Interior Ministry Trade Minister Roberto Feletti, author of the pricefreeze plans in force in the country today, called on the government to increase export tariffs on wheat and corn. The internal tension between them is likely to continue in the coming days.
According to the Buenos Aires Grain Exchange, the area under wheat will be between 3% and 5% smaller this year due to increased production costs.
One of the large banners that could be seen in the square read: “We did not come to ask for your help, but to get off us”. Another: “We are not willing to continue funding the rope they are using to hang us.”