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Argentine farm taxes row deepens | Argentine farm taxes row deepens |
(about 2 hours later) | |
Farmers in Argentina have pledged to continue a nationwide protest after the government refused to back down on tax rises on agricultural exports. | Farmers in Argentina have pledged to continue a nationwide protest after the government refused to back down on tax rises on agricultural exports. |
Two weeks of blockades by farmers have left many shops in the main cities short of meat and dairy products. | Two weeks of blockades by farmers have left many shops in the main cities short of meat and dairy products. |
Amid the shortages, thousands of Argentines, banging pots and pans, took to the streets to back the farmers. | Amid the shortages, thousands of Argentines, banging pots and pans, took to the streets to back the farmers. |
President Cristina Fernandez, in office since December, says the increased taxes on farm exports are justified. | President Cristina Fernandez, in office since December, says the increased taxes on farm exports are justified. |
Protesters have been stopping lorries carrying farm produce and either turning them back or dumping their goods on the road. | Protesters have been stopping lorries carrying farm produce and either turning them back or dumping their goods on the road. |
Speaking on national television, President Fernandez said the agricultural sector was one of the country's most profitable with global demand growing for Argentine beef, corn, wheat and soybeans. | Speaking on national television, President Fernandez said the agricultural sector was one of the country's most profitable with global demand growing for Argentine beef, corn, wheat and soybeans. |
President Fernandez is facing her biggest test since taking office | President Fernandez is facing her biggest test since taking office |
"I'm not going to submit to extortion. I understand the industry's interests but I want them to know that I'm the president for all Argentines," she said, making it clear there would be no talks while the farmers' strike continued. | "I'm not going to submit to extortion. I understand the industry's interests but I want them to know that I'm the president for all Argentines," she said, making it clear there would be no talks while the farmers' strike continued. |
Soon after her address, demonstrators in Buenos Aires and other cities gathered on the streets to stage pot-banging protests. | Soon after her address, demonstrators in Buenos Aires and other cities gathered on the streets to stage pot-banging protests. |
"This is a pretty ugly wake-up call for the government after just a few months in power," protesters Hector Bernardino told Reuters. | "This is a pretty ugly wake-up call for the government after just a few months in power," protesters Hector Bernardino told Reuters. |
He said middle-class Argentines, like the farmers, were tired of taxes and double-digit inflation. | He said middle-class Argentines, like the farmers, were tired of taxes and double-digit inflation. |
Flashpoints | Flashpoints |
Argentina is one of the world's top exporters of soya, wheat and beef and any prolonged conflict will have a major effect on vital export earnings, says the BBC's Daniel Schweimler in Buenos Aires. | Argentina is one of the world's top exporters of soya, wheat and beef and any prolonged conflict will have a major effect on vital export earnings, says the BBC's Daniel Schweimler in Buenos Aires. |
The farmers' strike is the biggest crisis faced by Ms Fernandez since she took office more than three months ago, succeeding her husband Nestor Kirchner, our correspondent adds. | The farmers' strike is the biggest crisis faced by Ms Fernandez since she took office more than three months ago, succeeding her husband Nestor Kirchner, our correspondent adds. |
Farmers argue that they produce much of the country's wealth | Farmers argue that they produce much of the country's wealth |
The government has been using taxes on grain and commodity exports to boost state revenues. | The government has been using taxes on grain and commodity exports to boost state revenues. |
Taxes on a range of goods including soybeans, sunflower oil and beef are being raised by up to 45%, increases that farmers have described as crippling. | Taxes on a range of goods including soybeans, sunflower oil and beef are being raised by up to 45%, increases that farmers have described as crippling. |
"We will continue the strike for as long as necessary," said Eduardo Buzzi, president of the Argentine Agrarian Federation (FAA). | "We will continue the strike for as long as necessary," said Eduardo Buzzi, president of the Argentine Agrarian Federation (FAA). |
Trade at Argentina's largest grain and cattle markets has ground to a halt while many shops are reporting shortages of supplies. | Trade at Argentina's largest grain and cattle markets has ground to a halt while many shops are reporting shortages of supplies. |
There have been disputes between farmers and truck drivers, and armed police have been deployed at potential flashpoints. | There have been disputes between farmers and truck drivers, and armed police have been deployed at potential flashpoints. |
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