Argentina Cuts Industrial Export Duties To Boost Trade

(MENAFN- The Rio Times) On May 7, 2025, authorities issued Decree 305/25 to remove export duties on 4,411 industrial products. The move seeks to boost local industrial exports and global competitiveness.

Economy Minister Luis Caputo highlighted that the measure covers 88 percent of Argentina's manufactured exports. The duty repeal will initially benefit 3,580 companies, nearly forty percent of all Argentine exporters.

Affected goods included agricultural machinery, auto parts, optics, glass, pharmaceuticals, cosmetics, plastics, metals, watchmaking products, cables and insecticides. Together, these products generated 3.804 billion dollars in export revenue in 2024.

Decree 305/25 eliminates export levies previously set between three and four point five percent. Industries like iron, steel, aluminum, petrochemicals and the automotive sector will continue paying export duties.

The government formalized this step following pressure from small and medium firms and the Unión Industrial Argentina. Earlier in January 2025, authorities removed or reduced export duties on agroindustrial and regional goods.



President Javier Milei's administration has pursued strict fiscal consolidation since December 2023, cutting public spending by 4.7 percent of GDP. The austerity push helped lower annual inflation from 211 percent in 2023 to 118 percent last year.

Business leaders expect higher export volumes, stronger trade balances and new manufacturing jobs. They view this reform as a key move to integrate Argentina into global markets on competitive terms.

Earlier in January 2025, the government issued Decree 38/2025 to remove export duties on regional agroindustrial goods. It covered textiles, paper, cardboard, foodstuffs, beverages and major crops like soy, corn and wheat.

Industry analysts expect the duty repeal to improve price competitiveness abroad and drive volume growth. They note that removing these distortions may encourage small and medium enterprises to expand export operations.

Exporters express optimism and plan to explore markets in Latin America, Europe and Asia. They also anticipate reinvesting saved taxes into production upgrades.

By cutting export duties, Argentina signals a shift toward a more open trade stance. This reform marks a clear break with past policies that prioritized domestic price controls over export expansion.

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