Permanent Export Tax Rate Reductions The Argentine government has again reduced export tax rates on major agricultural products including soybeans, corn, grain sorghum, and sunflowers. This time implemented as permanent reductions without set time periods. Decree 526/2025, promulgated on July 31 and effective the following day, reduced corn and grain sorghum from 12% to 9.5%, sunflowers from 7.0% to 5.5%, and sunflower-related products from 5.5% to 4.0%.
Significant Soybean Export Tax Reduction The most significant change involves soybeans, with export tax rates substantially reduced from 33.0% to 26.0%. Soybean-related products also decreased from 31.0% to 24.5%. Meanwhile, barley and wheat remain unchanged, continuing at 9.5%. Beef and poultry export tax rates were also reduced from 6.75% to 5.0%. These tax rate changes are expected to improve competitiveness of Argentina's major export products.
Policy Background and Objectives The government implemented similar export tax rate reductions in January 2025, but limited the period until the end of June, with rates increasing from July 1 except for wheat and barley. The current decree explains: "The current administration recognizes the need to create favorable conditions for production and trade to stabilize the macroeconomy and develop domestic production" and "the goal is to bring certainty to producers, processors, and exporters."
Expert Views and Challenges According to Ricardo Negri, who served as Agriculture Secretary during the Macri administration, reducing export tax rates is an excellent decision that promotes production expansion and reduces producer risks. However, export taxes comprise approximately 8% of total national revenue and serve as valuable federal government financial resources not subject to provincial distribution, making replacement difficult. He analyzes that the existence of such systems significantly damages Argentina's agricultural production and exports. The Milei administration aims for complete elimination of export taxes on all products.