Permanent End to Retentions Sought
At the 138th Rural Exposition in Palermo, Nicolás Pino, president of the Sociedad Rural Argentina (SRA), demanded the definitive elimination of export retention taxes. Before an audience that included President Javier Milei and other officials, he described the taxes as a 'confiscatory' regime and urged that they be removed 'by law and forever.' He noted that since 2002, the state collected $215 billion from retentions, and that the current government's reductions allowed producers to keep $6 billion.[S1][S2]
Pino stated that producers reinvested those funds in genetics, pastures, machinery, and other improvements, leading to growth in rural employment and agricultural output. He cited specific production increases: a 34% rise in corn harvest, a doubling of sunflower to 7.5 million tons, and a record wheat crop of 30 million tons. 'It is proven that retentions must cease to exist, by law and forever,' he emphasized.[S1]
Praise for Milei and Call for More Tax Cuts
Pino acknowledged the achievements of the current economic policy, including lower inflation, fiscal balance, and exchange rate stability, which he said provide predictability for agricultural activity. He valued the dialogue with the national government, which allowed progress on measures demanded by the sector. However, he insisted on the need to reduce the tax burden further, calling for an end to provincial and municipal taxes that act as 'internal customs' forbidden by the Constitution.[S1]
He criticized taxes such as gross income, road tolls that do not translate into works, and charges on interprovincial merchandise transport. 'Tax reduction is not only a matter of justice for producers; when taxes go down, production increases, benefiting the entire population,' he said. Pino also demanded infrastructure investments, particularly in rural roads, ports, and railways, to reduce the 'Argentine cost' and improve competitiveness.[S1][S4]
Infrastructure and Financial System Demands
Pino highlighted the need for investments in infrastructure to mitigate the impact of extreme weather events, such as the potential return of El Niño. He called for the execution of pending works in the Salado river basin and a comprehensive infrastructure plan. He also stressed that the deterioration of rural roads, ports, and railways increases the 'Argentine cost' and reduces competitiveness.[S1]
The SRA president also called for a financial system that supports long-term investments, with credit lines suited to productive cycles. 'A credit that cannot be repaid is not a credit; it is assured bankruptcy,' he stated, urging banks to offer terms and rates appropriate for agricultural activity. He emphasized that growth requires financial backing.[S1]
Sector's Economic Role and Institutional Outlook
Pino highlighted the agricultural sector's key role in the economy, noting that over the last year, agricultural chains generated more than $83 billion: $40 billion from agriculture, $34 billion from livestock, and $11.5 billion from regional economies. He affirmed that when the countryside demands just changes, it does so because it has much to offer. The sector indirectly and directly generates over 4 million jobs, and its growth reactivates the entire country.[S1][S4]
On the institutional front, Pino reviewed his management as SRA president, noting that he traveled over a million kilometers to maintain direct contact with producers nationwide. He emphasized the entity's work in presenting proposals to various governments, achieving some favorable responses, such as reductions and in some cases suppression of retentions. The SRA is currently facing internal elections in September, where Pino will compete against his vice president Marcos Pereda.[S1][S3]
