Sunday, April 13, 2008

Farm strike

"South America's second-largest economy — a leading exporter of soybeans, beef and wheat — is in full farmbelt rebellion over a new sliding-scale increase in export taxes. Soybean taxes are being hiked from 35 percent to 45 percent, with smaller increases on corn and other farm products.

But Fernandez appeared undeterred as she delivered a televised address later in the evening. Vowing not to "give in to extortion," the new president declared that her government will not grant any concessions to the striking farm and ranch workers.

Fernandez said farm producers have profited from a boom in commodity prices and it is only fair to tax them more to redistribute wealth to poorer parts of society. "This seems like ... comedy," she said." (Thanks D.)

The news is a bit old (March 25), but I had missed it then. It is still very interesting and helps to understand the global working of the food export economy. Farming is an industry in some parts of Argentina, and often a very environmentally damaging one and taxation for wealth redistribution comes naturally.

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