South America Calling

A quick follow up to Monday's blog post.

Paraguay's President Horacio Cartes Wednesday vetoed a planned 10% tax on soybean and other grain exports, labeling the measure regressive.

Last week, Congress approved the tax, which would raise badly-need government funds and promote in-country grain processing

But Cartes said in a statement that the measure may increase government revenues in the short term but in the medium to long term would "work against" economic growth.

Paraguay is expected to produce over 9 million metric tons of soybeans in the coming season and is the world's No. 4 soybean exporter. Overall grains production is pegged at around 15 mmt.

(AG)

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