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Mercosur Regional Analysis

Argentine Export Duties Last week the Argentine government announced an emergency plan to reduce the state deficit, which includes an export duty on agricultural products. Since last Tuesday, the duty rate of 4 pesos for every U.S. dollar of value on those exports was applied as of last Tuesday and will remain in effect until 31 December 2020. Considering the exchange rate in Argentina is 38 ARS/USD, this equates to a 10.5 percent duty on any primary exported product. Value-added products will have an export duty of 3 ARS/USD. The export duties already in effect (prior to the latest announcement) of 25.5 percent on soybeans and 23 percent on soyoil/soymeal were reduced to 18 percent to compensate for the new additional tax. The differe...

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From WPI Consulting

Infrastructure investment due diligence

On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.

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