Argentina has retroactively set the duty rate for biodiesel for all quantities shipped in April to 13.2% exports and nearly tripled. Market participants are appalled about the arbitrariness of their Government, to the consequences of the fall, as well as the loss of the sales market of the EU still must cope with.
A retrospective setting of tariff rates make unpredictable biodiesel sales abroad. In March, the customs rate 5% was located at 8.9% in February. The Argentine biodiesel Association dealing with the industry called unprecedented and disproportionate. Under these conditions, an economic operation is not possible.
Since 2007, the inauguration of President Cristina Fernandez, the third largest economy in Latin America agricultural policy is interventionist and unpredictable. Starting in October, after the next presidential election, in which Fernandez no longer allowed to compete, investors of a new Government hope more stability and more agriculture-friendly policies.
