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Argentine farmers 'to end strike'

The strike by relatively well-off farmers has highlighted class divisions in Argentina [AFP]

Leaders of Argentina's farming sector have decided to end their strike and resume grain exports from midnight on Sunday, local media say.

The strike had been called to oppose taxes on soya exports.

But Cristina Kirchner, the president, has refused to roll back the 13 per cent tariff increase on soya bean exports that she announced in March.

Hugo Biolcati, vice-president of the Argentine Rural Union (SRA), said international grain sales would resume early on Monday just as sales of animal products did on Friday.

He did not divulge terms of any deal.

However, some non-union activists have said that they might not stop the strike action because the government still had not committed to opening negotiations.

Deepening divisions

The nearly 90-day-old strike took a turn for the worse earlier this week when truckers' unions in four provinces, including Buenos Aires, parked their rigs on some 60 roads.

Argentina's economic woes

Although a nation rich in natural resources, Argentina's 39.5 million strong population has suffered in recent decades from several economic crises

Fiscal deficits, high inflation and mounting debts culminated in 2001's economic crisis, which sparked protests, currency devaluation and debt defaults

Sixty per cent of Argentinians were also pushed below the poverty line

Country's main exports include soybeans, corn, wheat, petroleum, gas and vehicles

Inflation is currently in double figures and farmers say recent tax increases on goods such as soybeans, sunflower oil and beef by up to 45 per cent to boost revenues will cripple their livelihoods

Data source: CIA World Factbook

The confrontation has deepened divisions between Argentina's upper and middle classes - including many well-off farmers - and the poor, swollen by the country's 2001 financial collapse, who overwhelmingly support Kirchner.

Kirchner criticised farm owners on Thursday, saying they were ignoring the plight of ordinary citizens.

"Show me the worker, store owner or businessman who can afford to stop working for 90 days," she said in a speech.

"Only those who have accumulated a great income and a great capital can do it."

She was referring to many large farm owners who have grown rich with the rising price of commodities.

Argentina is one of the biggest food producers in the world, leading with exports of soya bean oil.

It is also the second biggest corn exporter, after the US, and the fifth biggest wheat exporter.

Source:

Agencies

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