The Minister of Economy, Sergio Massa, announced the reopening as of Monday of the Export Increase Program (PIE) that establishes a differential exchange rate for the soybean complex of $230 per unit.
“As of Monday, we are going to reestablish the export promotion program for the agro-industrial complex of everything that is soybeans and their derivatives. We do it with the conviction that we have to achieve, by December 30, beat the record of Argentine exports in what is the agro-industrial complex, understanding that Argentina is part of the agenda of the food security agenda, just like the debate and the fight for proteins at a global level is one of the great fights”, Massa said during a meeting he had with members of the agro-industrial chain.
After the meeting, in a contact he had with the press, the Secretary of Agriculture and Livestock, Juan José Bahillo, pointed out that “the Government’s agreement with the cereal companies has a guaranteed and signed floor of US$ 3,000 million” of liquidation until next December 31.
The official also explained that, with what was obtained from the collection of export duties, “we will work on financing promotion for regional economies; subsidies to the poultry, bovine, dairy and swine value chains to increase production; and a fund to maintain the value of family allowances”.
In addition, the program “plans to return to the withholdings that are charged for soybean meal and oil at 31% from the current 33%” and that were in force until December 31, explained Bahillo.
Massa: “We are going to close the year meeting our goal of accumulating reserves”
The Minister of Economy, Sergio Massa, said that with the reestablishment in December of the export promotion program, which establishes a differential exchange rate for the soybean complex of 0 per unit, 2022 will end “meeting our goal in terms of accumulation of Bookings”.
“We are going to close the year meeting our goal in terms of reserve accumulation”Massa said this afternoon during a meeting he held with representatives of the agro-industrial sector, at the headquarters of the Palacio de Hacienda.
The commitment of the agro-industrial sector was to liquidate at least US$ 3,000 million during the last month of the year, the period in which the reopening of the program will be in effect.
Massa remarked that “it is important to clarify that the central objective of the program is for Argentina to consolidate its fiscal situation. We are going to close the year meeting that goal that we set for ourselves of the 2.5% deficit.”
“If we have a very good result, we will be able to show the world that we have broken all records and fulfilled our commitment in the global food security agenda, which has to do with guaranteeing the supply of protein production,” said the minister.
Massa confirmed that the program will be launched next Monday from – with the publication in the Official Gazette of a Decree of Necessity and Urgency.
The minister pointed out that the reopening of the program -the first stage was in force last September, with a differential change of 0- was initially scheduled for the beginning of 2023, but “we made the decision to speed it up, understanding that it can even help us to generate the culture of the promotion regarding the investment projection for 2023, leveraging it from now on”.
“We do it with the conviction that we have to achieve, by December 30, to break the record of Argentine exports in what is the agro-industrial complex, understanding that Argentina is part of the food security agenda, just like that the debate and the fight for proteins at a global level is one of the great fights”he emphasized.
Along the same lines, he justified the implementation of the program “with the conviction that aligning the incentives makes it possible to strengthen reserves, allows generating a higher level of activity in the agricultural and agro-industrial sector.”
“In addition, the greater collection that this generates for the State has to be used virtuously to try to address the asymmetries or difficulties that the program may generate in the domestic market,” said Massa.
For this reason, “a circle of assistance for the dairy, pork and poultry value chains will be launched with the aim of trying to ensure that these tax revenues, in part, serve to try to help compensate for the imbalances that occur in the domestic market due to the change in value,” he announced.
Likewise, He announced that another objective of the program is that “the greater resources that we accumulate in December, serve us during the months of January, February and March to face a program to reduce withholdings in the regional economies in order to make them more competitive in terms of exports”.
“If the program works, which we understand is going to work, it can allow us to advance in a scheme that continues to guarantee some of the social benefits that we carry out,” the minister concluded.