On August 6, 2024, the National Government of Argentina announced a series of measures aimed at strengthening the competitiveness of the agroindustrial sector by eliminating export duties for specific products and reducing tariffs on others. These decisions, previewed by President Javier Milei during the inauguration of the 2024 Rural Exhibition, seek to provide greater predictability and competitiveness to a key sector of the Argentine economy.
Details of the Measures
1. Elimination of Export Duties for Cow Category Products:
- Export duties are eliminated for cow category products (excluding live animals) whose characteristics are A, B, C, D, and E, as stipulated in Annex III of Resolution No. 32/2018.
- This measure will primarily benefit the beef chain, which paid over USD 60 million in duties in 2023.
2. Elimination of Tariffs for the Pork Chain:
- Tariffs are eliminated for all pork chain products, aiming to improve their competitiveness and international projection.
3. Definitive Elimination of Export Duties for the Dairy Chain:
- Export duties for dairy chain products, which ranged between 4.5% and 9% and were temporarily suspended until June 2025, are definitively eliminated.
- This measure seeks to provide greater predictability and foster growth in productivity and investments in the dairy industry.
4. 25% Reduction in Tariffs for All Animal Proteins:
- A 25% reduction in tariffs is implemented for all animal proteins, whose current rates range between 4.5% and 9%.
- This measure will cover the sheep, poultry, beef, and other exportable species chains, which produce in all provinces of the country.
Economic Impact
The new provisions have a significant impact on Argentina’s agroindustrial economy:
- In 2023, only 25% of the export duties for these categories amounted to more than USD 70 million.
- These measures will allow these amounts to return to the production chain, providing greater competitiveness to origin transformation and promoting more balanced economic development nationwide.
Context and Objectives
These measures are part of a broader process of deregulation, reduction of tariffs on agricultural inputs, opening of international markets, and simplification of commercial control procedures. The objective is to relieve the burden of the State on agricultural production, a sector responsible for 1.2 million jobs and 63% of Argentina’s total exports.
Decree 697/2024, which formalizes these measures, establishes a new tariff schedule for goods included in the COMMON MERCOSUR NOMENCLATURE (NCM), except for those included in Article 2 of the decree, which will have a rate of ZERO PERCENT (0%).
Summary of Measures
| Measure | Beneficiaries | Economic Impact |
|---|---|---|
| Elimination of export duties for cow category products (A, B, C, D, E) | Beef chain | USD 60 million in duties eliminated |
| Elimination of tariffs for the pork chain | Pork chain | Greater international competitiveness |
| Definitive elimination of export duties for dairy chain products | Dairy chain | Improvement in predictability and investments |
| 25% reduction in tariffs for animal proteins | Sheep, poultry, beef, and other exportable species chains | USD 70 million in tariffs reduced |
With these measures, the government seeks to promote the development and competitiveness of the agroindustrial sector, ensuring the maximum value-added in the country and improving the income of producers and manufacturers.
