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Argentine investment in Uruguay is continuing to skyrocket as agricultural producers flee constraining Argentine tax structures in favor of investing in Uruguayan soy production, Uruguayan newspaper El Pais reported Sept. 2. Increased Argentine investment in Uruguay underlines one of the ominous implications of Argentine agricultural policies: the flight of domestic capital.
Argentina’s agricultural industry is suffering under the burden of government tax and price cap policies. The nationwide protests that began in March forced the government to rescind major export taxes on soybeans that would have raised the tax on soybeans to around 45 percent. But problems remain.
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