This is exactly how we got our CWB and it wasn't for our benefit either!
RIO DE JANEIRO — Argentine farmers, already suffering from their country’s worst drought in more than a half-century, reacted angrily on Friday to reports that Argentina’s president was contemplating nationalizing domestic and foreign grain trading.
In Parched Argentina, Worries Over Economy Grow (February 21, 2009) Argentina’s two main daily newspapers, La Nación and Clarín, reported on their front pages on Friday that the government of President Cristina Fernández de Kirchner was considering the move to effectively monopolize the country’s most important export industry. They cited unnamed sources within the national tax agency.
Neither Mrs. Kirchner nor anyone else from her administration made any public statements on Friday, and government officials did not return calls seeking comment. Mrs. Kirchner will speak publicly on Sunday and has scheduled talks with farmers on Tuesday, according to Argentine news reports.
Analysts said an agricultural nationalization could be the latest move by Mrs. Kirchner to shore up fiscal accounts to ensure that Argentina could weather the global financial crisis and make payments on more than $18 billion in assorted debt obligations this year. In recent months she has nationalized the country’s largest airline and taken over billions of dollars in private pension funds.
Farm groups characterized the possibility of nationalization as a move to pressure them to sell millions of tons of stored grain from previous harvests and thereby weaken their negotiating position with the government.
Nationalization could help Mrs. Kirchner obtain hard currency from export taxes on grain, which brought in $8 billion last year, 3 percent of Argentina’s total revenues. Argentina has been struggling for dollars amid vast capital flight and has lost access to capital markets because of its history of economic mismanagement.
Farm industry leaders, who have been battling the government for a year now over the export taxes, said a nationalization would stiffen their opposition to the government. They want the government to lower export taxes to help them through the devastating drought, which economists estimate will reduce agricultural production by more than 15 percent this year. Falling grain prices are also taking their toll; wheat is worth less than half as much as it was last year.
While grain prices in Argentina were regulated as recently as 1991, nationalizing now, after a protracted boom, could be extremely difficult, industry officials said.
“I can’t imagine how you could implement something like this,” said Ricardo Forbes, the president of the Buenos Aires Cereals Exchange, in a televised interview on Friday night. He said just the talk of nationalization could further hurt the country’s reputation as a reliable grain exporter. His organization issued a letter late Friday signed by numerous farm groups denouncing the idea of nationalization.
Since protracted strikes by farmers last year, they have been a thorn in the side of Mrs. Kirchner and her husband, Néstor Kirchner, the former president and current leader of the Peronist bloc. Mr. Kirchner in particular has tried to neutralize their growing political influence, accusing them of being greedy “coup plotters.”
http://www.nytimes.com/2009/02/28/world/americas/28argentina.html?ref=world
RIO DE JANEIRO — Argentine farmers, already suffering from their country’s worst drought in more than a half-century, reacted angrily on Friday to reports that Argentina’s president was contemplating nationalizing domestic and foreign grain trading.
In Parched Argentina, Worries Over Economy Grow (February 21, 2009) Argentina’s two main daily newspapers, La Nación and Clarín, reported on their front pages on Friday that the government of President Cristina Fernández de Kirchner was considering the move to effectively monopolize the country’s most important export industry. They cited unnamed sources within the national tax agency.
Neither Mrs. Kirchner nor anyone else from her administration made any public statements on Friday, and government officials did not return calls seeking comment. Mrs. Kirchner will speak publicly on Sunday and has scheduled talks with farmers on Tuesday, according to Argentine news reports.
Analysts said an agricultural nationalization could be the latest move by Mrs. Kirchner to shore up fiscal accounts to ensure that Argentina could weather the global financial crisis and make payments on more than $18 billion in assorted debt obligations this year. In recent months she has nationalized the country’s largest airline and taken over billions of dollars in private pension funds.
Farm groups characterized the possibility of nationalization as a move to pressure them to sell millions of tons of stored grain from previous harvests and thereby weaken their negotiating position with the government.
Nationalization could help Mrs. Kirchner obtain hard currency from export taxes on grain, which brought in $8 billion last year, 3 percent of Argentina’s total revenues. Argentina has been struggling for dollars amid vast capital flight and has lost access to capital markets because of its history of economic mismanagement.
Farm industry leaders, who have been battling the government for a year now over the export taxes, said a nationalization would stiffen their opposition to the government. They want the government to lower export taxes to help them through the devastating drought, which economists estimate will reduce agricultural production by more than 15 percent this year. Falling grain prices are also taking their toll; wheat is worth less than half as much as it was last year.
While grain prices in Argentina were regulated as recently as 1991, nationalizing now, after a protracted boom, could be extremely difficult, industry officials said.
“I can’t imagine how you could implement something like this,” said Ricardo Forbes, the president of the Buenos Aires Cereals Exchange, in a televised interview on Friday night. He said just the talk of nationalization could further hurt the country’s reputation as a reliable grain exporter. His organization issued a letter late Friday signed by numerous farm groups denouncing the idea of nationalization.
Since protracted strikes by farmers last year, they have been a thorn in the side of Mrs. Kirchner and her husband, Néstor Kirchner, the former president and current leader of the Peronist bloc. Mr. Kirchner in particular has tried to neutralize their growing political influence, accusing them of being greedy “coup plotters.”
http://www.nytimes.com/2009/02/28/world/americas/28argentina.html?ref=world
Comment