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Argentina Senate rejects farm tax | Argentina Senate rejects farm tax |
(30 minutes later) | |
The Argentine Senate has narrowly rejected controversial tax increases on agricultural exports that have provoked repeated protests by farmers. | The Argentine Senate has narrowly rejected controversial tax increases on agricultural exports that have provoked repeated protests by farmers. |
With senators tied 36 to 36 after more than 16 hours of debate, Vice-President Julio Cobos cast the deciding vote to reject his government's proposals. | |
The outcome is as a blow to President Cristina Fernandez, correspondents say. | The outcome is as a blow to President Cristina Fernandez, correspondents say. |
Farmers said the taxes would be crippling, but the government said they were needed to fight poverty. | Farmers said the taxes would be crippling, but the government said they were needed to fight poverty. |
May history judge me, my vote is not for, it's against Julio CobosArgentine vice-president | |
Farmers have won a critical battle but the dispute is not over and Argentina faces some tough days and weeks ahead, says the BBC's Daniel Schweimler in Buenos Aires. | |
The government has said that it will seek another vote in the lower house, which passed the measures earlier this month. | |
Food prices | Food prices |
Mr Cobos, who is also leader of the Senate, said it had been "the most difficult day of my life". | |
Close to tears, he cast his deciding vote. | |
"They tell me I must go along with the government for institutional reasons, but my heart tells me otherwise. May history judge me, my vote is not for, it's against," he said. | |
Farmers and government supporters held rival demonstrations | |
In a Buenos Aires park, hundreds of farmers and their supporters erupted in cheers after watching the vote on big-screen televisions. | |
Argentina is a major producer of soya, grains and beef, which fetch high prices on international markets. | Argentina is a major producer of soya, grains and beef, which fetch high prices on international markets. |
The dispute between the government and farmers began in March, when President Fernandez's government raised taxes on soya exports from 35% to 45%, and imposed new taxes on other farm exports. | |
The government argued that they needed to raise taxes on agricultural exports to help build a new Argentina. | |
It said farmers could afford to pay more, as they were benefiting from high prices. | |
The authorities also accused farmers and their supporters of undermining democracy by refusing to respect the wishes of the elected government. | |
However, farmers' leaders said that any profits needed to be reinvested so that Argentina, one of the world's leading agricultural producers, could help to feed a hungry world. |