President Javier Milei announced a forthcoming reduction in export duties on wheat and barley, effective next month, and on soy, commencing in January, during a speech to rural business leaders in Buenos Aires on Thursday. The measure represents yet another gesture from the La Libertad Avanza leader towards the influential agricultural sector, which constituted over 60 percent of the nation’s exports in 2025, as per official data from the INDEC national statistics bureau. “We are going to lower export duties on wheat and barley from 7.5 to 5.5 percent starting in June 2026,” Milei stated. However, that is not the entirety of the situation. It would be unjust to overlook the significance of soy.
Beginning in January 2027, contingent upon the performance of tax revenues, there will be a gradual reduction of export duties by a margin of 0.25 to 0.50 percentage points each month, extending through to 2028, he stated. Milei indicated that the scheme would depend on the continuity of his administration – a reference to his upcoming re-election bid in 2027. The President also announced reductions in export duties impacting the automotive, petrochemical, and machinery sectors. Gustavo Idígoras, president of Argentina’s Cámara de Aceiteros industry group, expressed approval of the government’s decision to reduce export duties on grains. However, he cautioned that modifications related to soy must be managed with precision to prevent any disruption in trade flows.
“We welcome the reduction in export duties as it is invariably a positive development.” Idígoras stated “It is the right path.” He stated that the reduction in wheat and barley export taxes was “a major sign to producers to encourage planting amid a complex cost and price environment.” On soy, however, he cautioned that the plan remained “conditional on tax revenues and we will have to see how the situation evolves.” Milei’s new benefits were announced one day after INDEC reported that Argentine exports reached a “historic record” of US$8.914 billion in April. Official data indicates that Argentina’s economic activity experienced a year-on-year growth of 5.5 percent in March.
Since taking office in December 2023, Milei has implemented a strategy of significant expenditure reductions that enabled his administration to achieve fiscal surpluses in its initial two years in power. “We are going to continue shrinking public spending so we can return to decent Argentines the money that rightfully belongs to them. Let the state shrink and the market grow,” he said on Thursday. Milei has enacted extensive reductions in sectors including healthcare, education, and science in his efforts to achieve fiscal balance in Argentina.