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Argentines take to streets in farm furor

Demonstrators protest against Argentine President Cristina Fernandez's government in Buenos Aires on Tuesday. Thousands of Argentines in the capital and provincial cities joined in pot-banging protests against her government on Tuesday. PHOTO: AP

Large, pot-banging protests rang through Argentine cities for the first time in years after the president rejected negotiations with farmers and ranchers over increased export taxes on agricultural goods.

Argentine President Cristina Fernandez de Kirchner refused on Tuesday to ease tax hikes on agricultural exports, facing down angry farmers embroiled in a nationwide strike that has all but halted production in one of the world's biggest beef-eating and beef-exporting nations.

The president's hard-line address on national television unexpectedly mobilized thousands of middle class Argentines against the government and in support of the farmers.

And provincial cities across Argentina's farmbelt waged similar pot-banging protests called cacerolazo -- Spanish for the kinds of demonstrations used to bring down ill-fated former leaders during a 2001 to 2002 economic meltdown.

It was the first major cacerolazo protest since similar demonstrations forced former president Fernado de la Rua from office in December 2001 as the economy imploded.

"This is a pretty ugly wake-up alarm for the government after just a few months in power," said protester Hector Bernardino, among the 5,000 who thronged the main Plaza de Mayo in Buenos Aires into the early hours yesterday.

He said that middle class Argentines, like the farmers, are weary of taxes and double-digit inflation that he said the government has sought to conceal behind praise for a robust recovery from a 2002 economic crisis.

A protest by some 2,000 people was reported outside the president's suburban Buenos Aires residence. Some banged on the shuttered gates to her walled compound shouting "Argentina! Argentina! Cristina, Resign!"

The new sliding-scale increase in export taxes has sent South America's second-largest economy -- and a major agricultural exporter -- into full farmbelt rebellion.

Taxes on soybeans -- another major Argentine export -- are being hiked from 35 percent to 45 percent, with smaller increases on corn and other farm products.

"Bad policies by the government are leaving people without food, without beef," complained Mario Llambias, one of the farm protest organizers who announced yesterday that the strike would now continue "indefinitely."

But in a tough speech, Fernandez announced no concessions to striking farmworkers nationwide, vowing not to "give in to extortion." She even called the strike a "comedy" gag.

Farmworkers have vowed to strike indefinitely despite the threat of growing shortages nationwide.

"She chose a path of confrontation," said Eduardo Buzzi, one of the strike organizers. "Now I ask what will come after this ... repression?"

After a searing 2002 economic meltdown, the government replenished its coffers through taxes on surging grain exports and commodity prices. The cash influx powered an economic rebound, with growth rates topping 8 percent annually. Agriculture remains one of its most profitable sectors. But the industry is howling at having to pay more and farmers are demanding a rollback on the new taxes.

The government said it would hold no talks while the strike continues.

Across the country, police have managed to keep the most important routes open without widescale arrests or violence.

In Buenos Aires on Tuesday night, thousands of demonstrators supporting the striking farmworkers tensely stood face to face with about 200 pro-government jobless demonstrators who support Fernandez.

Pot-banging protester Ernesto Torres said the government's new tax plan triggered pent-up civic anger over what little impact the economic recovery has had on the pocketbooks of millions.

About a fourth of Argentina's 40 million people remain in poverty and the jobless rate still hovers stubbornly near 10 percent.

"This is outright robbery," said Torres, who fears that after taxing farmers Fernandez might next go after the middle class.
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