The Argentine government announced a reduction in export taxes for the livestock sector, with an emphasis on beef and the dairy industry. President Javier Milei’s expectation is that the measure will increase the competitiveness of Argentina’s products.
The country’s beef export tax was reduced to 6.75%, from the previous 9%, according to a decree published this week. The measure, which reduces the tax by 25%, partially fulfills a promise that president Javier Milei made to agricultural producers.
Argentina is a traditional exporter of beef, and the main destination of the product is the Chinese market. In 2023, Argentina’s beef shipments, both bone-in and boneless, reached 682,000 tons, according to data from the country’s Ministry of Agriculture, Livestock, and Fisheries, an increase of 7.7% compared to 2022.
“The idea of the Argentine government is to increase competitiveness in the international market and expand its exports. This is a heavyweight competitor for Brazil in the international market, especially for beef. However, even with these measures, Brazil remains much more competitive,” said Fernando Iglesias, coordinator of Livestock and Meat Sector at the Brazilian consultancy Safras & Mercado, to Brazilian media outlet Exame.
The Argentine government also eliminated the so-called “retenciones” on pork products. In addition, the decree permanently excluded taxes on dairy sector exports. This tax, which currently ranges from 4.5% to 9% and was suspended until June 2025, will be completely eliminated, according to the measure.