2008 Argentine government conflict with the agricultural sector
Encyclopedia
The 2008 Argentine government conflict with the agricultural sector started in March 2008, which then extended into a prolonged period of turbulent politics. The crisis began with four agricultural sector employers organizations taking direct action such as road blocks to protest against the decision of the government of Cristina Fernández de Kirchner
to raise export taxes on soybeans and sunflower
. The subsequent political upheaval has seen elements of the ruling Front for Victory
speak out against the government and the resignation of Economy Minister Martín Lousteau
.
In March 2008, Fernández de Kirchner's government introduced a new sliding-scale taxation system for agricultural exports, effectively raising levies on soybean exports to 44 percent from 35 percent at the time of the announcement.
The aim was to raise government funds for social investment by increasing the government's share of returns from rising world grain prices, and also to reduce domestic food prices by encouraging farmers to switch to growing staple food
s like wheat and corn, rather than export crops such as soybeans. Farmers, on the other hand, felt that the export duties were already too high. The move led to a nationwide lockout by farming associations, starting on March 11, with the aim of forcing the government to back down on the new taxation scheme. As a result, on March 25 thousands of demonstrators banging pots massed around the obelisk in the capital and in front of the presidential palace. Protests extended across the country. In Buenos Aires, hours after Fernández attacked farmers for their two-week strike and "abundant" profits, there were violent incidents between government supporters and protesters, and the police was accused of wilfully turning a blind eye.
The media was harshly critical of Luis D'Elía, a former government official who took part in the incidents, with some media sources and members of the opposition (notably Elisa Carrió
), claiming that he and his followers had violently suppressed the protest pursuant to the government's orders.
On April 1, the government organised a rally during which thousands of pro-government protesters marched through downtown Buenos Aires
in support of the Argentine leadership. Fernández called on farmers to act "as part of a country, not as owners of a country".
A poll-result published in the Spanish newspaper El Pais (Spain's most widely-circulated daily newspaper) revealed that, following the protests, Fernández's approval rating had "plummeted" from 57.8% at the start of her administration to an unprecedented 23%.
Because of the farmers' strikes, mass protests and road blocks in various parts of the country, President Cristina Kirchner was forced to send the government's farm exports tax proposal to the Argentine Congress. On July 5, the Argentine lower house
narrowly approved the government's tax package on agricultural exports by a vote of 129-122.
However, in the early morning of July 17, after seventeen hours of tense debate, the Argentine Senate
rejected the government's grain exports tax measure by a vote of 37-36, with Vice-President Julio Cobos
casting the decisive, tie-breaking vote against the measure. With the defeat of the farm exports tax bill in the Senate, it is expected that the four-month confrontation between the Kirchner administration and the agricultural sector over farm export levies will come to an expedient (if only temporary) end.
On July 18, the Argentine government officially revoked Resolution 125. Levies on agricultural exports returned to March 10 levels (i.e. before the controversial Resolution 125 was imposed by a presidential decree).
Cristina Fernández de Kirchner
Cristina Elisabet Fernández de Kirchner , commonly known as Cristina Fernández or Cristina Kirchner is the 55th and current President of Argentina and the widow of former President Néstor Kirchner. She is Argentina's first elected female president, and the second female president ever to serve...
to raise export taxes on soybeans and sunflower
Sunflower
Sunflower is an annual plant native to the Americas. It possesses a large inflorescence . The sunflower got its name from its huge, fiery blooms, whose shape and image is often used to depict the sun. The sunflower has a rough, hairy stem, broad, coarsely toothed, rough leaves and circular heads...
. The subsequent political upheaval has seen elements of the ruling Front for Victory
Front for Victory
The Front for Victory is a Peronist political party and electoral alliance in Argentina, although it is formally a faction of the Justicialist Party. Both the former President Néstor Kirchner and the current President Cristina Fernández de Kirchner belong to this party, located on the left-wing...
speak out against the government and the resignation of Economy Minister Martín Lousteau
Martín Lousteau
Martín Lousteau was the Minister of Economy and Production of Argentina under the administration of President Cristina Fernández de Kirchner, from December 10, 2007, until April 24, 2008...
.
In March 2008, Fernández de Kirchner's government introduced a new sliding-scale taxation system for agricultural exports, effectively raising levies on soybean exports to 44 percent from 35 percent at the time of the announcement.
The aim was to raise government funds for social investment by increasing the government's share of returns from rising world grain prices, and also to reduce domestic food prices by encouraging farmers to switch to growing staple food
Staple food
A staple food is one that is eaten regularly and in such quantities that it constitutes a dominant portion of a diet, and that supplies a high proportion of energy and nutrient needs. Most people live on a diet based on one or more staples...
s like wheat and corn, rather than export crops such as soybeans. Farmers, on the other hand, felt that the export duties were already too high. The move led to a nationwide lockout by farming associations, starting on March 11, with the aim of forcing the government to back down on the new taxation scheme. As a result, on March 25 thousands of demonstrators banging pots massed around the obelisk in the capital and in front of the presidential palace. Protests extended across the country. In Buenos Aires, hours after Fernández attacked farmers for their two-week strike and "abundant" profits, there were violent incidents between government supporters and protesters, and the police was accused of wilfully turning a blind eye.
The media was harshly critical of Luis D'Elía, a former government official who took part in the incidents, with some media sources and members of the opposition (notably Elisa Carrió
Elisa Carrió
Elisa María Avelina Carrió is an Argentine politician, founder of the party initially known as Alternative for a Republic of Equals , now Civic Coalition ARI ....
), claiming that he and his followers had violently suppressed the protest pursuant to the government's orders.
On April 1, the government organised a rally during which thousands of pro-government protesters marched through downtown Buenos Aires
Buenos Aires
Buenos Aires is the capital and largest city of Argentina, and the second-largest metropolitan area in South America, after São Paulo. It is located on the western shore of the estuary of the Río de la Plata, on the southeastern coast of the South American continent...
in support of the Argentine leadership. Fernández called on farmers to act "as part of a country, not as owners of a country".
A poll-result published in the Spanish newspaper El Pais (Spain's most widely-circulated daily newspaper) revealed that, following the protests, Fernández's approval rating had "plummeted" from 57.8% at the start of her administration to an unprecedented 23%.
Because of the farmers' strikes, mass protests and road blocks in various parts of the country, President Cristina Kirchner was forced to send the government's farm exports tax proposal to the Argentine Congress. On July 5, the Argentine lower house
Argentine Chamber of Deputies
The Chamber of Deputies is the lower house of the Argentine National Congress. This Chamber holds exclusive rights to create taxes, to draft troops, and to accuse the President, the ministers and the members of the Supreme Court before the Senate....
narrowly approved the government's tax package on agricultural exports by a vote of 129-122.
However, in the early morning of July 17, after seventeen hours of tense debate, the Argentine Senate
Argentine Senate
The Argentine Senate is the upper house of the Argentine National Congress. It has 72 senators: three for each province and three for the Autonomous City of Buenos Aires...
rejected the government's grain exports tax measure by a vote of 37-36, with Vice-President Julio Cobos
Julio Cobos
Julio César Cleto Cobos is an Argentine politician, currently serving as the Vice President of Argentina alongside President Cristina Fernández de Kirchner. He started his political career as member of the Radical Civic Union , becoming Governor of Mendoza in 2003...
casting the decisive, tie-breaking vote against the measure. With the defeat of the farm exports tax bill in the Senate, it is expected that the four-month confrontation between the Kirchner administration and the agricultural sector over farm export levies will come to an expedient (if only temporary) end.
On July 18, the Argentine government officially revoked Resolution 125. Levies on agricultural exports returned to March 10 levels (i.e. before the controversial Resolution 125 was imposed by a presidential decree).
See also
- History of Argentina — The recovery
- Alfredo de AngeliAlfredo de AngeliAlfredo de Angeli , nicknamed el Melli, is a rural leader of the Federación Agraria Argentina of Entre Ríos and of the ecology movement of the Asamblea Ciudadana Ambiental de Gualeguaychú...
- Federación Agraria ArgentinaFederación Agraria ArgentinaThe Argentine Agrarian Federation is a private institution that serves as a business organization for small and medium agricultural producers in Argentina. It was founded on 15 August 1912 after the first employers' strike of agrarian farmers demanding protection from the exploitation of big...