The Argentine Oil Industry Chamber (CIARA, for its Spanish initials) and the Center of Cereal Exporters (CEC, in Spanish) reported that the total exports of the Argentine agricultural sector in July 2025 reached US$4.1 billion. This figure indicates a 57% increase relative to July 2024 and a 20% rise compared to June of this year. The total annual increase stands at 43%. A CIARA statement indicates that exports in July 2025 represent “the best since records started being kept in 2002.”
Until President Milei announced a “permanent” reduction in export duties last Saturday, June 2025 was initially the final month in which agricultural companies were poised to benefit from lower taxes on soy and corn exports following the reduction issued last January. In July, a significant increase was observed as companies that had pre-sold their exports prior to the reinstatement of higher duties are mandated by law to convert 95% of their foreign currency earnings into pesos by a specified deadline, a process referred to as ‘liquidación de divisas’. CIARA indicates that the pesos agro-companies obtain from this process enable them to sustain operations within the sector by purchasing additional grains, which may subsequently be exported in their raw form or as an industrial byproduct.
Milei declared the reduction of export duties during a speech on Saturday at the Rural Expo, an annual event showcasing Argentina’s agricultural sector. “This aims to enhance agriculture, the economy’s most efficient sector, which has faced significant challenges due to these taxes over the past two decades,” the president stated. He stated that the reductions were “permanent” and assured that they would not be reinstated during his tenure in office.
The permanent removal of export duties has been a long-standing request from the influential agricultural sector for many years. Governments have employed them not solely for revenue generation but also to impose limits on local food prices. These have also been employed as negotiation strategies, as reduced export duties incentivize exporters to convert their U.S. dollar sales, thereby augmenting the nation’s international reserves.
Milei’s administration commenced its tenure by reducing export duties on select agricultural commodities in January. The suspension, originally scheduled to conclude in June and subsequently prolonged to July, was implemented for soybeans, corn, sunflowers, sorghum, and all associated byproducts. In the previous month, the administration reintroduced elevated export duties on a variety of products, eliciting criticism from agricultural associations.