Argentine leader defends tax hike

President Fernandez was defiant in her speech

Argentina's president has defended her government's decision to impose higher grain export tax, which has triggered months of protests by farmers.

Cristina Fernandez de Kirchner said the additional money raised would be spent on tackling poverty by building more housing, hospitals and roads.

She also apologised to anyone who had been offended by anything she had done.

On Monday, the farmers suspended the protests in the hope of returning to the negotiations with the government.

"I ask that all Argentines commit themselves to the fight against poverty and the redistribution of wealth," President Fernandez said in Buenos Aires.

Farmers say the taxes on exports are too high

Ms Fernandez's comments were criticised by one of the leaders of the farmers' movement.

Mario Llambiasi said it was wrong to single out the soya farmers as the sole source of revenue for social programmes.

Argentina raised export taxes on soy from 35% to 45% in March, trying to tap into an international commodities boom.

Argentina is one of the world's leading exporters of soy, wheat and beef.

E-mail this to a friend

Printable version