ANNOUNCEMENT 08 Jan 2016In January 2016, the government of Argentina announced a change in production support.
NUMBER OF INTERVENTIONS
Ministerio de Agroindustria (2016) Naci?n y el Ministerio de Agroindustria encabezaron la firma del acuerdo marco lechero. http://www.agroindustria.gob.ar/site/institucional/prensa/index.php?edit_accion=noticia&id_info=160108152616
The government of Argentina on 8 January 2016, introduced measures aimed at providing support to the producers engaged in the national dairy industry. The measures are legally embedded within a Framework Agreement signed between the Ministry of Treasury and Finance, the Ministry of Agro-Industry and the National Council of the Dairy Industry.
As a short-term assistance, the Ministryof Treasury and Finance will provide a compensatory contribution of 0.40 pesos (USD 0.028) per litre for the first 3000 liters of milk to all producers forthe months of January, February and March. The fiscal cost of thiscontribution is estimated to be 600 million pesos (USD 43.236.000).
Furthermore, the government promised to develop a comprehensive plan to provide milk producers with financing through the National Bank by the fall of 2016.
Moreover, as part of the denoted agreement, the government of Argentina stated that due to its intentions to sustain the December milk price, for all producers that were charging less than 2.60 pesos per liter (USD 0.18) a 15% price rise or a value recharge will be provided.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
Due to the unavailability of 2015 data, the affected trading partners were identified based on 2014 trade flows.