Argentine President Mauricio Macri on Monday announced new taxes on exports in the world’s third-biggest soy producer and steep cuts to spending in an “emergency” bid to balance next year’s budget, as his center-right government aims to persuade the IMF to speed up a $50 billion loan program.
Reuters reports the new taxes mark a step backward for Macri, a free-market advocate who slashed agricultural taxes upon taking office in 2015 to “normalize” the economy after years of heavy state intervention under his predecessor, Cristina Fernandez.
The new taxes might delay international shipments of grains from Argentina -- the world’s No.1 exporter of soymeal and soyoil and a top shipper of raw soybeans and corn -- as farmers and export companies monitor the exchange rate for the best time to sell.
