U.S. Embassy Visit

Our last day in Argentina was concluded with a visit to the United States Embassy. We visited with the Agriculture Embassy team representing the USDA. We discussed the new changes in government with the recent election of a new President for the country of Argentina and its effect on the agriculture sector of the economy.

Some of the major changes in tax structure include the complete elimination of export taxes on all grains, except soybeans which will be reduced five percent each year. To give some perspective, exported corn was taxed at a rate of 20 percent, wheat at 23 percent, and soybeans at 35 percent. Our main host, Lazaro Sandoval, USDA Ag Attaché explained how this will cause a spike in production of corn and wheat while an increase of soy acres will steadily grow over the next few years. This dramatic change comes as a welcome relief for producers that have been under anti-agriculture rule for 12 years and also for the Ag industry as a whole with 55% of total Argentine exports rooting in agriculture.

To a country that is the 3rd largest producer of soybeans in the world with 20 million hectares in production, these changes in the tax system will move the country in a positive direction to become even more competitive in the world market. Also, the new government plans to be more friendly to imports. For example, Kuhn tractor company can't get the parts they need to build tractors because of high import taxes under current policy. The new government plans to reduce these taxes so Argentina farmers can more easily afford new equipment.




U.S. Representatives in photo with SDSU Students: Far left - Lazaro Sandoval, USDA Ag Attache; Center: Kevin Sullivan, Deputy of Special Mission; Far Right - David Mergen, Agricultural Counselor.  

We were honored to visit the U.S. Embassy and meet the team that works on trade issues on behalf of the U.S. We also had the opportunity to have a short visit with the Deputy Ambassador of the Embassy, Kevin Sullivan, which was a real treat considering his very busy schedule.

Submitted by Jalen Baldwin and Jacob Baustin