ARGENTINA: Argentine farmers yesterday suspended a three-week strike over a tax hike on soy exports that has paralysed grain exports, caused food shortages and sparked a political crisis.
Farmers said they were calling off the strike for 30 days to continue negotiating with the government to press their demands for the tax increase to be repealed.
"The fight doesn't end here. Today we are simply taking a break to talk," said Juan Echeverria, a strike leader.
Hundreds of farmers gathered in the northeastern city of Gualeguaychu, where the decision was announced, a day after President Cristina Fernandez sought to show her resolve in rejecting farmers demands to drop the tax increase with a huge pro-government rally.
Farmers began lifting roadblocks that prevented farm goods and other products from reaching markets and ports. The strike has affected international grain prices. Argentina is a key world supplier of soybean, corn, wheat and beef.
It also has proved the most serious political challenge to President Fernandez. The tax plan replaces a fixed levy of 35 per cent on soybean exports with a variable rate that is about 40 per cent at current prices.
The decision to raise the taxes angered farmers already seething over government limits on exports aimed at controlling domestic food prices, even though they have benefited from state subsidies on fuel and policies that keep the currency weak.
Ms Fernandez defends the higher taxes as a key part of her economic plan to contain inflation and redistribute wealth from a commodities boom.