Argentina Permanently Lowers Export Taxes on Key Grains to Boost Agricultural Sector

Government Implements Permanent Tax Cuts

Argentina's government, under the administration of President Javier Milei, has enacted a permanent reduction in export taxes on several major agricultural commodities. The announcement, made by Economy Minister Luis Caputo in December 2025, aims to invigorate the nation's agricultural sector, a critical driver of its economy. The measures became effective around December 12, 2025, or upon publication in the Official Gazette.

Specific Reductions Detailed

The new policy significantly lowers the export duties, known as 'retenciones,' across a range of key crops and their by-products. The specific adjustments are as follows:

• Wheat and Barley: Export taxes were reduced from 9.5% to 7.5%.
• Corn and Sorghum: Taxes decreased from 9.5% to 8.5%.
• Soybeans: The levy on soybean exports was cut from 26% to 24%.
• Soybean By-products (Oil and Meal): Export taxes were lowered from 24.5% to 22.5%.
• Sunflower: Duties were reduced from 5.5% to 4.5%.

These reductions follow earlier adjustments in July 2025 and January 2025, which also saw cuts to export duties on various agricultural products, including the elimination of levies on minor crops such as rice, peanuts, sugar, and cotton.

Economic Rationale and Sector Response

Minister Caputo stated that this move represents 'a new step on the path to tax relief for the agricultural sector,' emphasizing a 'permanent reduction of export duties for grain and byproduct chains.' The primary objectives are to enhance the competitiveness of Argentine agricultural products in global markets, stimulate the sector, and boost the inflow of foreign currency, which is crucial for Argentina's economy. The agricultural sector is a vital component of the Argentine economy, accounting for nearly 60% of the country's exports. The decision has been widely welcomed by farming organizations, including the CIARA-CEC grain exporters and processors chamber and the local farmers' confederation CRA, with their representatives calling it 'highly valued' and 'a step that begins to restore profitability to the sector.'

Broader Context and Future Outlook

President Milei's administration has consistently expressed a commitment to gradually reducing and ultimately eliminating export duties, contingent on macroeconomic conditions. This policy shift is part of a broader strategy to reduce distortive taxes and improve public finances. Analysts anticipate that the lower taxes will particularly impact Argentina's 2025/26 wheat crop, potentially making Argentine grains more competitive internationally. Argentina is a significant player in global agricultural trade, being the world's largest exporter of soybean oil and meal, the third-largest corn exporter, and an important global wheat supplier.