On Thursday, Minister of Economy Luis Caputo and presidential spokesperson Manuel Adorni announced a temporary reduction and elimination of agricultural export duties. The Argentine government has now formalized this mechanism through Decree 38/2025, signed by Chief of Cabinet Guillermo Francos and Minister Caputo. The decree aims to optimize state resources to support macroeconomic stabilization and enhance Argentina’s international market presence.
Government Objectives and Agricultural Export Performance
The decree highlights the government’s commitment to transforming economic policy. It states that one of its main goals is to increase Argentina’s international trade participation by boosting agro-industrial exports, which currently account for over 60% of the country’s total exports. In 2024, agricultural exports experienced a positive trend, showing a value growth of over 25% compared to the previous year.
However, the decree also acknowledges the challenges faced by the agricultural sector, including adverse climatic conditions that have negatively affected crop yields and reduced agricultural production. These difficulties are compounded by declining international commodity prices.
The government justifies the new policy by stating that the measures aim to stimulate foreign market sales, improve income levels for producers and processors, strengthen local economies, and enhance product quality.
Export Duties: Temporary Reduction and Elimination
As outlined during the Casa Rosada announcement, Decree 38/2025 sets the export duty rate (Derecho de Exportación, D.E.) at 0% for certain agricultural products. The specified products are listed in Annex I of the decree and include regional economy commodities such as rice, bovine leather, sugar, cotton, tobacco, and forestry industry products. These products will benefit from a full elimination of export duties.
The decree also establishes a temporary reduction in export duties for the products listed in Annex II until June 30, 2025.
Eligibility Requirements for the Export Duty Benefit
To qualify for the new export duty rates, exporters must adhere to specific conditions outlined in Article 3 of the decree. The primary requirement is that exporters must liquidate at least 95% of the foreign currency proceeds from these agricultural exports within 15 business days of submitting the Sworn Export Sales Declaration (Declaración Jurada de Venta al Exterior – DJVE).
Failure to comply with this requirement within the stipulated timeframe will result in the exporter being subject to the export duty rate applicable before the decree was enacted.
Implications for the Agricultural Sector
This decree represents a significant shift in Argentina’s agricultural export policy. By temporarily reducing and eliminating export duties, the government aims to:
- Increase the competitiveness of Argentine agricultural products in global markets.
- Provide financial relief to producers affected by climate-related losses and price fluctuations.
- Encourage investment and expansion in the agricultural sector.
- Strengthen local economies by boosting regional agricultural industries.
The success of this policy will depend on the sector’s ability to comply with the stipulated requirements and the overall impact on Argentina’s economic stability. As the June 30 deadline approaches, stakeholders will closely monitor the effectiveness of this temporary measure and its potential extension or modification.