Farmers in Argentina Call Tax Strikes

In Buenos Aires, it was recently reported that a lot of Argentine farmers worked to block their roads in an effort to declare an anti-government strike last Friday. This was an attempt to re-ignite their standoff (more than a year now) for soy taxes as well as to challenge the president for three whole months before it came to a mid-term vote. Such protests had erupted only one day after there was a ruling party of lawmakers that did not want to debate on a bill to cut taxes that was led by the opposition. This refusal also contributed to the dimming of prospects of a quick conflict resolution which weakened the hold of President Cristina Fernandez.

Battling the Government and its Leader

President Cristina Fernandez’ government, which is currently cash-strapped, is now battling to still hold on to around four point nine billion dollars’ worth of tax revenues taken from soy exports. This was during the run-up of the congressional vote that should take place sometime in June of this year. Mario Llambias, who is the president of the group Argentine Rural Confederations, said that there was a really great opportunity lost the previous day. The group Argentine Rural Confederations is one of the four main groups of farming in the entire country. Mario Llambias had also called a seven day freeze for the sales of livestock and grains since last Saturday. President Cristina Fernandez had ended up further sparking the ire of farmers of this agricultural powerhouse because of an announcement she made. Recently, it was announced by Fernandez that the revenues made from the levies shall be shared with the other provincial governments.

Things are Looking Like the Past

Alfredo de Angeli, the local FFA branch’s outspoken leader, also mentions that it was just like going back to the 2008 situation. Alfredo De Angeli was also arrested last year by the military police because he ended up blocking the same highway found in the eastern province of the Entre Rios. There were a lot of protestors that successfully stopped traffic by putting their tractors on the highways found in the Pampas fertile region. They also ended up burning their tires that were very reminiscent of scenes seen last year. That was the time when blockades had caused some sporadic food shortages and ended up sending local financial markets cascading down. A lot of protests made last Friday had ended up pushing the United States soy futures as well as local livestock prices a whole lot higher as the peso as well as the Argentine bonds ended up falling down. One Citigroup analyst based in Chicago by the name of Mario Balletto had mentioned that seven whole days are not enough to cause a lot of excitement. However, if the uncertainty prevails then it could be much longer time for it to be quite supportive of prices.