On July 18th, the Argentine President and the Ministry of Finance revoked the increase in grain export taxes that had been imposed on March 11 via Ministry of Finance Resolution No 125. Argentina's lower house had approved a bill ratifying the Resolution, but the Senate rejected on July 17th, which triggered enormous pressures from farm producers and organizations for the Resolution to be revoked.
Resolution 125 implemented an increasing-scale system pegged to global commodity prices for export taxes on grains and oilseeds.
After a hot 18-hour- debate in the Senate and two separate votes of 36-36, Vice President Julio Cobos, who also serves as president of the Senate, on July 17thg broke the tie by unexpectedly voting against the measure.
However, Resolution 125 remained in effect until a new Resolution or Decree revoke it.
Following pressures from producers, agribusiness organizations and Congress representatives, the Executive Power announced on July 18th that it repealed the Resolution by means of Decree No. 1176/2008 and Resolutions (Ministry of Finance) 180/2008, 181/2008 and 180/2008, published in Argentina’s Official Gazette on July 21st. 2008. Referred regulations reinstated export tax rates in force prior to March 11th, which ranged from 20% to 35%.
Had not the government repealed the Resolution, an enormous amount of legal claims would have been brought before the courts on constitutional grounds.
The Supreme Court had unofficially disclosed that it would have ruled against Resolution No. 125 on unconstitutionality grounds.
posted by P. Sebastian Lopez-Sanson @ 11:02 AM
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