During the 172nd anniversary of the Buenos Aires Grain Exchange, President Javier Milei announced that the government will lower export duties on wheat and barley from 7.5% to 5.5% starting in June of this year.
He also confirmed that beginning in January 2027, and depending on revenue results, export duties on soybeans will be reduced by between 0.25% and 0.5% per month. “It will be done on a continuous basis until 2028 if we are re-elected,” he stated.
Additionally, he clarified that export duties will be reduced for the automotive industry, petrochemical sector, and machinery. “Our mission is to shrink the State. Why? To lower taxes. And that is what I want to talk to you about today,” the president said before listing the reductions.
“And I’m not just going to lower duties for the agricultural sector. We will also reduce them for industry starting in July until June 2027 — for the automotive industry, the petrochemical industry, and machinery — bringing them down to zero. This schedule will be announced by the Ministry of Economy in the coming days. This means we will continue lowering export duties, we will continue reducing the size of public spending to return to hardworking Argentines the money that belongs to them, so that the State shrinks and the market grows, giving us more freedom and, therefore, more prosperity,” he added.
Immediately afterward, the Argentine Chamber of the Oil Industry (Ciara) posted on X: “We celebrate the decision to continue reducing export duties on wheat and barley, and especially the cuts on soybeans. We will collaborate with the Ministry of Economy to find the most appropriate way so that it does not generate negative effects on commercialization.”
The Center of Brokers and Agents of the Grain Exchange also issued a statement: “We highlight the importance of moving toward more predictable and competitive rules that reduce distortions, improve price formation, and strengthen the development of the grain market. Brokerage will continue to fulfill its essential role of providing transparency, professionalism, and trust in connecting supply and demand,” they commented on their X account.
The Argentine Rural Society (SRA) issued a communiqué supporting the measure announced by the President, “We receive with optimism the National Government’s announcement regarding the reduction of export duties. It is a measure that allows us to recover competitiveness, encourage investment, and promote true development of the Argentine countryside,” the organization stated.
What Lies Ahead for the Countryside
In his speech, the President analyzed the immediate future for the agricultural sector and reviewed changes that could have positive consequences for the activity.
In this context, Milei stated that the agricultural sector is facing an especially favorable scenario and assured that the government’s goal is to deepen deregulation of the sector. “The countryside is projecting one of its best years in history, with record harvests and exports, despite the export duties and so many years of distorted exchange rates due to capital controls. Our goal is to remove any obstacles that politics has placed in the way,” he affirmed.
The President also made a historical defense of the agricultural sector and criticized policies applied by previous governments. “For decades, the countryside has been the payer of last resort in Argentina. When there was a crisis, duties were raised; when dollars were scarce, the exchange rate was split; and when there was inflation, price controls were imposed on production. It was always the same sector footing the bill for everyone else’s broken plates,” he noted.
In this regard, he argued that the current economic framework will allow the agricultural sector to stop being the sole support of the economy. “This is coming to an end, because for the first time other sectors will grow with the same strength,” he said.
Even so, Milei acknowledged that the government has not moved as quickly as the sector demands on tax matters. “We are going to free up the agricultural sector more and more every day. I also understand that the speed we are moving at to resolve the sector’s main demand is not ideal,” he admitted.
In addition to the cuts in export duties, the president listed other measures that, he said, aim to improve competitiveness and accelerate investments. Among them, he highlighted changes to tax refunds for productive projects. “The VAT generated by productive investments is now returned in three months instead of five years as before. All of that is working capital that returns quickly to the producer so they can continue investing,” he explained.
Milei also linked the future of agriculture to the commercial opening promoted by the government and stated that the country is undergoing a change in international strategy. “Argentina, for the first time in decades, is opening up to the world. We signed the agreement with the European Union. Yesterday we signed seven more agreements and we have a trade agreement with the United States,” he said.
Impact of the Reduction in Export Duties on Revenue
Although it is still too early to calculate the fiscal impact of Thursday’s announcements, it is worth reviewing what experts said after the duty reductions applied during 2025.
Last December, when the government announced a reduction in export duties for various crops, private consultancies estimated the fiscal cost could range between USD 500 million and USD 700 million annually, depending on the evolution of international prices and export volumes.
Romano Group estimated a fiscal cost close to USD 580 million for 2026, while consultancy LCG projected a revenue loss of around 687 million dollars. At that time, export duties represented just over 4% of national tax revenue.
Experts also noted that lowering duties could encourage greater liquidation by the agricultural sector and improve foreign currency inflows. Now, with Milei’s new announcements, the impact could be greater.