Argentine farmers restarted their damaging national strike over a hike in export taxes on Saturday, barely 24 hours after it ended, after negotiations with the government broke down.
The four major farming groups said in a statement that the government of Argentine President Cristina Kirchner had refused their demand to suspend an increase in the tax on soya products, Argentina biggest export, for at least 90 days.
They suspended their 16-day strike, which had seen roads blocked across the country, on Friday after Kirchner called for talks over their concerns about the increase of taxes on soyabean exports from 35 percent to 44.1 percent.
But five hours of negotiations overnight Friday ended in failure, and the groups ordered a resumption of the protests that had caused nationwide food shortages and prompted clashes between farmers and truckers.
TESTING KIRCHNER
The strike has become the biggest test so far of Kirchner's mandate.
She and other ministers have labeled the farmers "extortionists," and pointed out that sky-high commodities prices on the world market, coupled with Argentina's devalued peso, have made many rural landowners very wealthy.
But farmers complain that the tax hike, combined with income taxes, transport costs and the high cost of land, would push many of them out of business.
Half of Argentina's fertile farmland is used for soyabean cultivation, and the country is the biggest soya exporter in the world, sending US$13 billion worth to China, India, Southeast Asia and Europe each year.
RELIEF IN BUENOS AIRES
The capital, where chicken, beef and dairy products became scarce during the week, saw some relief on Saturday. Hundreds of trucks that had been held up for days during the strike unloaded produce at the Central Market, a huge Buenos Aires wholesale hub.
Official news agency Telam said truck traffic was normal in the central province of Cordoba, where roadblocks were lifted.
Cabinet chief Alberto Fernandez, who led the negotiations on Friday night, said talks would continue today, but it was not clear if farm leaders would attend.
The FAA farming federation, one of the big-four Argentine agriculture groups, said that the talks were disappointing.
"They need to suspend the [new, higher] export taxes for 90 days ... Since the president, who could have decided to do that last night, did not ... we are continuing the protest until Wednesday," FAA president Eduardo Buzzi said live on television after an assembly.
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