U.S. soybean futures on Wednesday extended a rebound from a sharp drop earlier this week after the Argentine Ministry of Agriculture suspended the registration of agricultural exports until further notice. The movement was seen as foreshadowing a jump from 30% to 33% in grain export tariffs that Alberto Fernández’s government might announce this weekend, thus shifting exports to the United States.
The U.S. Department of Commerce has decided to remove Argentina and other 24 countries of their list of developing countries, which may restrict trade benefits granted to nations in this category. According to Argentine Foreign Ministry sources, the measure "still has no direct consequences" and the Embassy in Washington will continue to monitor the issue.
Argentina Foreign Minister Felipe Solá confirmed that Donald Trump's administration will exempt Argentina from the tax of up to 25% on steel and aluminium imports. He praised the work of Argentine embassy in the USA toward this aim. Australia, Canada and Mexico were also exempted from the additional aluminium tariffs and Brazil, Canada, Australia, Mexico and South Korea, from the steel tariffs.
Argentina estimates that its fresh lemon exports to the United States could triple in two years to 30,000 tons in 2020, according to the U.S. Department of Agriculture’s Foreign Agricultural Service. Lemon exports from Argentina to the U.S. were 10,640 in 2018 and 23,179 tons from January to October 2019.