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In the latest twist involving the long running saga between farmers and the Argentine Government, congress has rejected a tax hike introduced by President Fernandez over four months ago. After 18 hours of debating, and the senate in a complete deadlock, a single vote decided the outcome.
The intention was to introduce a sliding export tax on soya products, currently representing 24% of total exports, in order to raise funds to pay off Argentina's crippling dept, control food-price inflation and encourage farmers to grow other much needed crops. This was immediate met with criticism and farmers organised protests to disrupt soyabeans reaching key crushing facilities and ports.
President Fernandez decided to pass the proposal to congress after all attempts to reach an amicable agreement with feuding farmers over the export taxes failed to advance.
On hearing the news farmers demanded the government roll back or modify the tax measures.
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