The Argentine government on Friday abolished the controversial Resolution 125 passed on March 10 to raise taxes on grain exports.
President Cristina Fernandez signed the abolition decree one day after the Senate narrowly defeated a government tax hike on grain exports, with Vice President Julio Cobos casting a decisive "no" vote after four months of farm protests.
The move brought back the taxation on agricultural and livestock exports to the level in November 2007. In the case of soybeans, the tax rate was returned to 35 percent from the 47 percent levied under Resolution 125.
Farmers' associations expressed satisfaction about the measure, but noted that they would continue to pursue policy changes to favor smaller producers.
Argentina, the world's third largest producer of soybeans that exports over 95 percent of its production, had been gripped by conflicts between the government and farmers over the tax increases.
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