Argentina’s farmers plan to strike for four days this week in protest to President Alberto Fernández’s decision to raise the tax on exported soybeans, soybean meal, and soybean oil form 30% to 33%, reports Reuters.
The government argues that the tax increase is necessary to combat a whole host of economic issues, including debt, inflation, unemployment, and food emergencies.
Those opposed to the take hike claim that the increase will discourage investment and hurt soybean harvests.
China is the primary destination for exports of soya (HS commodity code 1201).
Argentina exported $1.89 billion in soya (HS code 1201) in 2018. China was the primary destination for soya exports in 2018. Argentina exported $1.31 billion in soya, or 95% of total exports, to China that year, and just $0.03 billion to the Unites States.
Exports fell from a high of $5.25 billion in 2011, briefly rebounding for $4.27 billion in 2015, before falling steeply afterward.