Agricultural Policy Monitoring and Evaluation 2025

4. Argentina

Main findings

Support to agriculture

Argentina’s overall support to the agricultural sector has been negative since the beginning of the 2000s due to export taxes that depress domestic prices received by producers. However, some budgetary payments are provided to producers based on input use, mainly in the form of credit at preferential rates. Occasionally, direct payments are provided as disaster assistance in response to extreme weather events, most frequently for drought.

Support to producers (Producer Support Estimate, PSE) averaged -11.9% of gross farm receipts in 2022‑24, compared to -8.6% two decades earlier (2000-02). Fluctuations in support are driven by changes in market price support due to changing export tax rates and macroeconomic conditions such as the depreciation of the Argentine peso since 2018 and periods of high inflation. The average ratio of producer to border reference prices (National Protection Coefficient, NPC) reached 0.9 in 2022-24, making producers’ prices on average 10% below reference levels based on world market prices.

During 2022-24, Single Commodity Transfers (SCT) were most negative for soybeans, maize, wheat, and sunflower. Price support and SCTs were positive only for pig meat and eggs. Mirroring the negative PSE, consumers enjoyed a positive Consumer Support Estimate (CSE) of 5.3% of expenditure at farm-gate prices in 2022-24.

Support to general services (General Service Support Estimate, GSSE) decreased from 0.6% in 2000-02 to 0.5% in 2022-24 relative to the value of agricultural production, well below that of most emerging economies covered in this report. Expenditure on the agricultural innovation system and extension services represents the largest component of GSSE but has been decreasing relative to other GSSE components and notably relative to the size of the sector.

Total budgetary support to farmers and the sector overall was 0.1% of Gross Domestic Product (GDP) in 2022-24, well below the absolute value of negative market price support, making the Total Support Estimate (TSE) negative throughout the period: -0.7% of GDP in 2000-02 and -1.3% in 2022-24.

Key recent policy changes

Argentina initiated comprehensive policy reforms seeking deregulation of trade, services, and production, eliminating restrictions on the supply of goods and services and removing regulatory barriers. This resulted in several new measures related to agriculture. Export taxes were temporarily reduced for some relevant commodities (soybeans, maize, wheat, barley, sorghum, and sunflower) and removed for some regional products (including sugar, cotton, bovine leather, tobacco, forestry industry, and rice), administrative export permits were simplified or removed, and regional product exports were deregulated.

Other relevant regulatory measures include, for example, the simplification of administrative procedures, the changes and digitalisation of certification requirements, and changes in the wine industry regulations.

Steps were taken to strengthen surveillance and traceability systems. For instance, the digital traceability of livestock started being implemented, and sanitary measures were adopted in response to the Avian Influenza and Equine Encephalomyelitis outbreaks.

Assessment and recommendations

• Argentina has made progress in aligning its agricultural trade policy with environmental sustainability goals through domestic initiatives and international co-operation frameworks. To enhance effectiveness of these approaches, Argentina should strengthen the coherence between trade and sustainability policies by expanding impact assessments across all measures, promoting robust implementation of environmental provisions in regional agreements, and supporting producers in meeting international sustainability standards to maintain and improve access to export markets.

• Further investment should be made to provide technical assistance, training, and capacity building for farmers to become more resilient and improve their sustainability performance. The government should encourage farmers to adopt climate-smart practices, crop diversification, and sustainable land-management techniques through targeted support programmes and financial incentives.

• The implementation of measures to simplify and eliminate bureaucratic hurdles that affect production and exports goes in the right direction, but agricultural policy more broadly could be better anchored within a coherent long-term policy framework. This could help develop more stable, predictable and targeted policies. Avoiding delays in policy implementation would help farmers to plan their economic activities more efficiently.

• A balanced and transparent approach to export taxes would enhance predictability for farmers and other actors. As part of the broader tax system, this approach should give greater priority to alternative sources of fiscal revenues rather than export taxes.

• Investment in training programmes, knowledge-sharing platforms, and the development of regional agro-industrial value chains (such as the wine industry in 2024) should be expanded. These can boost the competitiveness and resilience of small and medium size producers.

• Argentina’s Agricultural Knowledge and Innovation System (AKIS) has been one of the country’s key strengths with institutions that have historically played a central role in research, extension services, and technological development. This robust network has contributed to significant productivity gains, the adoption of sustainable practices, and the diffusion of innovation across diverse farming systems. However, declining public investment, limited co-ordination among institutions, and policy disincentives have weakened its effectiveness. At the same time, productivity growth has declined and even become negative in the past decade, while there are persistent high levels of agricultural greenhouse gas (GHG) emissions. To reverse this trend, Argentina should strengthen strategic governance of its AKIS by increasing and stabilising public funding, improving co-ordination among research and extension institutions, and reinforcing linkages with farmers. To deliver research, extension, and other public goods for agricultural innovation, Argentina should develop systematic monitoring of efforts and results in R&D and innovation and define and implement strategic priorities.

Development of support to agriculture

Table 4.1. Argentina: Estimates of support to agriculture

Million USD

	2000-02	2022-24	2022	2023	2024p
Total value of production (at farm gate)	16 379	85 547	73 463	124 080	59 097
of which: share of MPS commodities (%)	82.55	83.88	84.75	81.27	85.61
Total value of consumption (at farm gate)	7 449	58 824	50 785	85 698	39 989
Producer Support Estimate (PSE)	-801	-9 538	-13 199	-6 126	-9 288
Support based on commodity output	-835	-9 668	-13 363	-6 306	-9 335
Market price support¹	-898	-9 735	-13 427	-6 374	-9 404
Positive market price support	47	402	426	309	472
Negative market price support	-945	-10 137	-13 853	-6 683	-9 877
Payments based on output	62	67	64	68	70
Payments based on input use	34	129	162	179	47
Based on variable input use	2	12	11	24	0
with input constraints	0	0	0	0	0
Based on fixed capital formation	23	92	121	118	36
with input constraints	0	0	0	0	0
Based on on-farm services	8	26	30	37	11
with input constraints	0	0	0	0	0
Payments based on current A/An/R/I, production required	0	1	2	2	0
Based on Receipts / Income	0	0	0	0	0
Based on Area planted / Animal numbers	0	1	2	2	0
with input constraints	0	0	0	0	0
Payments based on non-current A/An/R/I, production required	0	0	0	0	0
Payments based on non-current A/An/R/I, production not required	0	0	0	0	0
With variable payment rates	0	0	0	0	0
with commodity exceptions	0	0	0	0	0
With fixed payment rates	0	0	0	0	0
with commodity exceptions	0	0	0	0	0
Payments based on non-commodity criteria	0	0	0	0	0
Based on long-term resource retirement	0	0	0	0	0
Based on a specific non-commodity output	0	0	0	0	0
Based on other non-commodity criteria	0	0	0	0	0
Miscellaneous payments	0	0	0	0	0
Percentage PSE (%)	-8.59	-11.96	-17.91	-4.93	-15.69
Producer NPC (coeff.)	0.92	0.95	0.84	0.95	0.97
Producer NAC (coeff.)	0.92	0.89	0.85	0.95	0.86
General Services Support Estimate (GSSE)	116	406	413	525	279
Agricultural knowledge and innovation system	66	201	179	306	117
Inspection and control	33	146	156	139	141
Development and maintenance of infrastructure	17	37	35	58	17
Marketing and promotion	0	22	42	21	4
Cost of public stockholding	0	0	0	0	0
Miscellaneous	0	0	0	0	0
Percentage GSSE (% of TSE)	..	..	..	..	..
Consumer Support Estimate (CSE)	211	5 118	11 443	2 325	1 587
Transfers to producers from consumers	249	5 525	12 026	2 954	1 595
Other transfers from consumers	-6	139	420	-2	0
Transfers to consumers from taxpayers	0	0	0	0	0
Excess feed cost	-32	-546	-1 003	-627	-8
Percentage CSE (%)	6.11	5.30	22.53	2.71	3.97
Consumer NPC (coeff.)	0.94	0.95	0.80	0.97	0.96
Consumer NAC (coeff.)	0.94	0.95	0.82	0.97	0.96
Total Support Estimate (TSE)	-685	-9 132	-12 786	-5 601	-9 008
Transfers from consumers	-243	-5 664	-12 446	-2 952	-1 595
Transfers from taxpayers	-436	-3 607	-761	-2 648	-7 413
Budget revenues	-6	139	420	-2	0
Percentage TSE (% of GDP)	0.73	-1.33	-2.02	0.87	-1.39
Total Budgetary Support Estimate (TBSE)	213	603	641	773	396
Percentage TBSE (% of GDP)	0.10	0.08	0.10	0.12	0.06
GDP deflator (2000-02 = 100)	100	59 272	16 222	38 180	123 414
Exchange rate (national currency per USD)	1.69	447.19	130.62	296.26	914.69

.. Not available

Note: p: provisional. NPC: Nominal Protection Coefficient. NAC: Nominal Assistance Coefficient. A/An/R/I: Area planted/Animal numbers/Receipts/Income. 1. Market Price Support (MPS) is net of producer levies and excess feed cost. MPS commodities for Argentina are: wheat, maize, soybean, sunflower, fruit and vegetables, milk, beef and veal, pig meat, poultry and eggs.

Source: OECD (2025), “Producer and Consumer Support Estimates”, OECD Agricultural policy monitoring (database), https://data-explorer.oecd.org/.

Policy landscape

Main policy instruments

Unlike most countries covered by this report, Argentina maintains export restrictions that result in domestic prices lower than on international markets. Export taxes are by far the most important market intervention and a major source of government revenues. Since December 2023, a decree changed the design and implementation of export taxes, suspended export taxes on certain dairy products until the end of the year, setting the rate at 0%. While it did not prohibit the Executive from changing export duties by decree, it requires that any such changes be reported to Congress, in line with Law 26.122, which governs legislative oversight of executive decrees. Export taxes continue to be subject to executive power and were modified by decree in January 2024, July 2024, and January 2025. In the last modification, export rates for some products were set at 0%.

A relatively small amount of input subsidies is provided, mostly via preferential credits that finance investment and working capital for producing certain commodities. For example, the fund FONDAGRO, established in 2017, finances investment in the sector at preferential interest rates for specific groups. This fund was closed by decree in 2024.1 The Ministry of Productive Development provides credit financing for capital investments by micro, small, and medium-sized enterprises in the poultry and pig sectors. Direct payments are provided occasionally as disaster assistance in response to extreme weather events, most frequently for drought.

The Special Tobacco Fund (FET) was created in 1972 to provide additional revenue and support to tobacco producers in certain northern provinces. The fund is financed by a 7% tax on retail tobacco sales. The federal government transfers 80% of collected funds to tobacco-producing provinces based on their share of production. After signing the WTO agreement in 1994, Argentina committed to reducing this support, and FET payments to tobacco producers have declined. The remaining funds are used for technical assistance, investing in local infrastructure, and providing social and health assistance to the population in need.

Public expenditures in agriculture are mainly for general services to the sector such as the agricultural knowledge (42% of GSSE) and innovation system and inspection control services (51% of GSSE). INTA is the national organism responsible for research and promoting technological innovation in agriculture, livestock, and agri-food. The institute conducts scientific and technological research, provides technical assistance and training to farmers and other stakeholders in the agricultural sector through a vast network of extension services, and develops and disseminates knowledge and technologies related to agricultural production, agro-industrial processes, and rural development. INTA also collaborates with national and international organisations, universities, and private companies to promote innovation and competitiveness in the agricultural sector (OECD, 2019[1]; Echeverria, 2021[2]).

The safety and quality of agricultural and livestock products is controlled via regulations and standards for the production, processing, and transport of agricultural products. SENASA is responsible for this, as well as certification, inspection, and laboratory services to ensure compliance with these standards. SENASA also works to prevent and control the spread of animal and plant diseases, registers pesticides and other agricultural chemicals for agricultural use and oversees agrochemical products that are imported or manufactured in the country to protect human health. The National Institute of Viticulture (INV) is the Argentine regulatory body overseeing the authenticity and safety of wine production, and the control of ethyl alcohol and methanol in compliance with national laws. It recognises and protects Geographical Indications to highlight product quality based on origin.

The Provincial Agricultural Services Program (PROSAP) contributes to the competitiveness and development of rural economies through investments in provincial rural infrastructure (roads, irrigation, electrification, and specific civil works) and competitiveness support services for producers and agro-industrial companies.

Since January 2020, the Argentina Against Hunger social programme has provided financial support for children, pregnant women and disabled people. Support is provided through an electronic food card that can be used in any grocery store. The food card is given to parents of children under the age of six who receive the Universal Allowance per Child (AUH), pregnant women who receive the Universal Pregnancy Allowance (AUE), and people with disabilities who receive the AUH. In 2024, the programme reached over 4.1 million beneficiaries (ANSES, 2024[3]; ANSES, 2025[4]).

Agri-environmental regulations and policies in Argentina are mostly legislated and implemented at the provincial level. For example, Santa Fe started a Good Agricultural Practices Programme in 2021, and Entre Ríos enacted a Law on Soil Conservation in 2018, which requires mandatory soil conservation for areas with soil degradation. In Buenos Aires, the Buenas Prácticas Agrícolas - Suelos Bonaerenses programme, which started in 2020, provides training and supports extensive producers of crops to carry out crop rotation, practices reducing water and wind erosion, and plans to reduce pesticide use. Córdoba has a Law on Good Agricultural Practices that sets standards for sustainable agricultural production and compliance with the programme gives farmers access to lump-sum payments. At the national level, a law adopted in 2016, establishes a national system for the safe management and recycling of empty phytosanitary containers, aiming to reduce health and environmental risks.

The agricultural sector contributes 25% of GHG emissions (Subsecretaría de Ambiente, 2024[5]). Argentina’s second NDC for the 2015 Paris Agreement on Climate Change was submitted in December 2020 and updated in October 2021. Argentina is committed to an economy-wide net emission limit of 349 MtCO₂eq by 2030 – equivalent to a decrease of 19% compared to the peak reached in 2007. In November 2022, Argentina submitted a long-term strategy (LTS) to the UNFCCC that includes a target to reach GHG neutrality by 2050. Argentina has implemented several policies and initiatives aimed at mitigating GHG emissions in the Agriculture, Forestry, and Other Land Use (AFOLU) sector. Key measures include promoting renewable energy, enhancing energy efficiency, adopting sustainable agricultural practices, and improving waste management.

Some of the tools that Argentina employs to reach this goal are expansion of renewable energies (at least 30% of the total energy matrix will have to be from renewable sources by 2030), lower subsidies for fossil fuels, expanded protected areas, and improved efficiency in agriculture, industry, transport and construction among others. In addition to its active commitment and participation in the primary multilateral competent fora on climate change, i.e. the UNFCCC, Argentina participates in other initiatives, such as the Global Bioenergy Partnership and the Global Research Alliance on Agricultural Greenhouse Gases (GRA) and the Global Methane Pledge initiative, among others. The National Institute of Agricultural Technology (INTA) plays an important role in research and innovation to reduce GHG emissions from agriculture and has a portfolio of research projects related to climate change mitigation and adaptation.

Policies for trade and sustainability in agro-food markets

The regional trade agreement between Argentina and Chile includes an environment-related provision on sustainable agriculture (Chapter 13, Trade and the Environment, Article 13.9 Sustainable Agriculture). In application since 2019, this measure aims to promote environmental co-operation by facilitating exchange of information and experiences in the development and implementation of integrated policies for sustainable agricultural development. The provision focuses on domestic environmental laws and policies, recognising the relevance of policies and programmes promoting sustainability, inclusiveness, and resilience in agricultural and forestry systems. This co-operation aligns with the 2030 Agenda for Sustainable Development. The Bilateral Administrative Commission and the Trade and Environment Committee are responsible for overseeing the measure’s implementation, which includes identifying potential areas of co-operation and determining modalities for collaboration. The enforcement mechanism encourages dialogue, consultation, and co-operation to resolve issues but explicitly excludes dispute resolution through the formal Dispute Settlement Mechanism (Frezal and Deuss, 2025[6]). The EU-Mercosur, still under negotiation, includes a chapter and an annex on trade and sustainable development.2

Some domestic GHG measures support adopting sustainable agricultural practices and improved efficiency. The specified links to trade vary, with some measures directly affecting trade flows, for example, biofuel promotion and sustainable livestock certification, while others have indirect effects, like emission standards for the sector. Some measures explicitly evaluate trade effects, particularly those linked to exports, e.g. biofuels.

The Law 27.520 on Minimum Budgets for Adaptation and Mitigation to Global Climate Change provides a regulatory framework for climate change mitigation and adaptation, reinforcing international commitments and compiling national and subnational climate actions. The Second National Plan for Adaptation and Mitigation to Climate Change from 2023 includes updates on emission inventories, incorporating new categories such as harvested wood products, which can influence trade in the forestry sector. Additionally, Argentina’s National Greenhouse Gas Inventory (INGEI) serves as a key tool for identifying high-emission sectors and assessing potential mitigation measures. Other initiatives, such as the National Forest Management Plan with Integrated Livestock Farming and the PNAYMCC L4-M18: Promote Forest Management with Integrated Livestock Farming, both aim to integrate sustainable livestock production within forest ecosystems, promoting deforestation-free supply chains.

Market-based mechanisms are under consideration. For example, a measure on Emissions Trade assesses the feasibility of participating in carbon markets under Article 6 of the Paris Agreement. In addition, policies such as Promoting the Adoption of Biofuels, illustrate Argentina’s efforts to align trade with low-carbon production and sustainability goals.

Initiatives to measure the carbon footprint of the agro-food chain have been implemented. These include the Winery Sustainability Self-Assessment Protocol, which provides a means for assessing the carbon footprint in wine production, and the Life Cycle and Environmental Footprint Analysis Platform (from INTA), which co-ordinates life cycle assessments and environmental footprint calculations for agro-industrial value chains. Furthermore, the National Strategy for the Use of Carbon Markets (ENUMEC) and related policies aim to integrate carbon markets into national climate strategies, influencing both domestic and international trade. These efforts seek to improve transparency, support low-emission trade practices, and align with global sustainability standards.

Recent policy developments

Domestic policy developments in 2024-25

Production and marketing practices

Several measures were implemented to simplify and eliminate bureaucratic hurdles that affect production and exports. For example, some procedures to be completed in the Argentine Integrated Health Information System (SISA) and requirements for slaughterhouses to report the price of bovine transactions daily were eliminated, as were requirements for the registration of exporters of meat, dairy products and grains. Registration requirements have been removed for 63 of the 108 activities in the Single Registry of the Agri-Food Chain (RUCA). The bovine classification management was modified in 2024, and 13 new government classifiers were incorporated to certify meat exports to the European Union.

In 2024 several measures were introduced to optimise resources and streamline commercialisation, including facilitating export procedures, implementing electronic certification, and eliminating bureaucratic requirements. Notable changes included the approval of new winemaking practices such as wine dealcoholisation and sugar recovery, the recognition of new product categories, and the simplification of regulatory processes to enhance transparency and efficiency in the wine industry.

In 2024, Argentina finished an application manual to contribute to the interpretation and effective application of the regulations of the Law for the Promotion of Healthy Eating.3 The law made it mandatory to place one or more warning labels for each critical nutrient, as appropriate, as well as cautionary legends, for example, for sweeteners and caffeine. Technical assistance to the sector continued in 2024 in terms of possibilities for reformulation or substitutes of foods, responses to queries and information material were provided to actors in the food sector.

In October 2024, the current traceability system to the National Electronic Individual Traceability System for bovines, buffalos and cervids was replaced with a new digital system in the form of a mandatory individual identification tool based on technical specifications defined by SENASA.4 This system will expand the scope of individual traceability that was already done for some markets such as the European Union. It will make it possible to establish the precise traceability of each animal from the primary link to the meat industry once the system will be completely implemented.

The National Legume Board (created in 2023) had two meetings in June and October 2024 to address priority actions within the Legume Strategic Plan, with broad representation from all the sector stakeholders. In April 2024, the Specific Technical Committee for Legumes was created under the National Seed Commission (CONASE) given the priority placed on genetic improvement, modernisation of materials, and expanding adapted varieties. In 2025, work will continue in genetic improvement and seeds, market development, technology adoption, financial strategies, and public-private collaboration.

Support to producers

In the context of the Programme PROLANA that assists wool producers in improving the quality of wool, its presentation, and sales conditions, the Banco de la Nación Argentina (BNA) has created a line of credit for sheep producers for the acquisition of machinery, waterers and feeders, fencing and related civil works, and the purchase of breeding sheep.

Previous support programmes for the dairy sector were replaced by three new financing programmes implemented during 2024:

• The MÁS BICE Programme “Dairy Chain Assistance” Line, which offers financing tools aimed at dairy farmers for dairy farm modernisation, facilities to improve animal welfare, and the purchase of machinery and supplies.

• The “UVA Milk Liter Loans” financing line, specifically designed for dairy producers, with a system that sets instalments in litres of milk.

• The “Product Value Financing for the Dairy Sector in UVAs” financing line, created by BNA, which is intended for general investment and capital goods.

Animal and plant health and safety

Responding to outbreaks of Avian Influenza worldwide and particularly in North America, Argentina has strengthened epidemiological surveillance in commercial, backyard, and wild birds through SENASA.

In January 2024, due to the reappearance after 35 years without reported cases of Equine Encephalomyelitis, a disease with significant impact on equine health, mandatory vaccination was established. The regulation required the use of vaccines registered with the National Service against Eastern and Western Equine Encephalomyelitis, applied to all equines from two months of age. Animals that had not received their first dose had to be vaccinated within ten days of the publication of the regulation.

Additionally, since June 2024 and through a SENASA resolution, Argentina accepted equivalence from third countries regarding the active chemical or biochemical substances of plant protection products, as part of the national plan for deregulation and simplification.5

Bioeconomy and biotechnology

Six genetic modifications for plants were approved for commercialisation in 2024 and until April 2025 in Argentina: two herbicide-tolerant maize, two herbicide insect-tolerant and insect-resistant maize, two herbicide- and three herbicide-tolerant and insect-resistant soybeans.6 Also, in 2024, the first nine genetically modified yeasts with improved capacity to produce bioethanol from grain fermentation were authorised for commercialisation in Argentina. Finally, 10 genetically modified vaccines for animal health in swine, dogs and poultry were authorised for commercialisation. Additionally, during 2024, Argentina awarded 21 labels for bioproducts (17 for biomaterials and 4 for bioinputs) and 12 certificates of interest (8 for biomaterials and 4 for bioinputs).

Rural development, family farms and indigenous agriculture

The National Registry of Family Farming (ReNAF) records are being cleaned, updated, and geolocated to characterise rural families. This will allow a better design of public policies seeking to generate a positive impact on this population.

Several activities established during the COVID-19 crisis were terminated in 2025. For example, two programmes ended in March 2025: the Economic Insertion Programme for Family Producers in Northern Argentina (PROCANOR), and the Goat Chain Development Programme (PRODECCA) that aimed to improve the income of goat-producing families in Indigenous Peasant Family Agriculture.

The Programme for the Promotion of Resilient and Sustainable Agri-food Systems for Family Farming (PROSAF), which supports sustainable, inclusive production and marketing systems for peasants and family farmers, formulated 14 integral projects during 2024.

Trade policy developments in 2024-25

Several measures were implemented with the aim of liberalising agricultural trade, improving competitiveness, and reducing regulatory burdens on exporters. In December 2023, the new administration modified the functions of the Ministry of Finance to design and implement export taxes and adjust their rates by decree, and changes need to be reported to Congress. The new administration committed to reduce and finally eliminate export taxes on agricultural products. Subsequent changes in export taxes continued to be done by decree. Temporary reductions in export taxes were implemented by decree in January 2024, July 2024, and January 2025. In the last modification, export rates were set at 0% for some products, including sugar, food preparations, cotton, bovine leather, beverages; sheep (wool and leather), tobacco, forestry, rice, and peanuts. Additionally, the temporary reduction in export taxes for soybean (from 31% to 24.5%), wheat, barley, sorghum, and maize (from 12% to 9.5%), and sunflower (from 7% to 5.5%), was extended until June 2025.

In May 2024, Argentina eliminated the equilibrium volumes of exports (VEE) for maize and wheat, which were administrative export permits granted by the former Ministry of Agriculture depending on the quantity available and the price in the domestic market (in place since January 2021).7 In January 2024, an exceptional automatic extension was granted for 30 calendar days from the shipment deadline for sworn declaration of exports (DJVE) with a shipment deadline between 1 February and 29 February 2024. Additionally, a 60 calendar-day extension was granted from the shipment deadline for DJVEs with a shipment deadline between 1 March and 31 March 2024 for bread wheat.8 Also, for products that are not exported in bulk (bags and packages) or in containers, a 120-day extension was granted.9 Also, the requirement to register export sales of regional products (such as legumes, rice, peanuts, maize oil, popcorn maize, and wheat bran) through the sworn declarations system (DJVE) was eliminated in June 2024.10

On 12 June 2024, Argentina, Brazil, Paraguay and Uruguay signed a memorandum for the creation of the International Biosafety Network (ABRE-Bio, Biosafety Agencies Network for Biotechnology), to promote the exchange of scientific information and co-operation in the risk assessment and regulation of genetically modified organisms as well as the joint approach to products derived from new breeding techniques. The countries will work to create common procedures for the evaluation of biosafety, enhance processes, seeking to reduce costs and time, and harmonise regulations with the specific legislation of each country.

In December 2024, the European Union and the four founding members of the Mercosur (Argentina, Brazil, Paraguay and Uruguay) reached a political agreement on the trade pillar of the EU-Mercosur association agreement.

Policy context

Key economic and agricultural statistics

Argentina is an upper middle-income country with a dynamic agricultural sector that has been making a growing contribution to the GDP, from 4.7% of the GDP in 2000 to 5.9% in 2023. In contrast, agriculture’s share of employment decreased from 13.7% in 2000 to 8.3% in 2023. The country is one of the world’s largest agricultural exporters, and agro-food represented 41.5% of total exports in 2000, and 49.4% in 2023. In contrast, agro-food imports represented only 5.4% of total imports in 2000 and 10.9% in 2023. Argentina has abundant agricultural land representing around 4% of the total agricultural area of all countries covered in this report, with a large share of this area composed of pastureland.

Table 4.2. Argentina: Contextual indicators

	Argentina		International comparison
	2000*	2023*	2000*	2023*
Economic context			Share in total of all countries
GDP (billion USD in PPPs)	428	1 370	1.1%	0.9%
Population (million)	37	46	0.9%	0.9%
Land area (thousand km2)	2 737	2 737	3.4%	3.3%
Agricultural area (AA) (thousand ha)	128 510	118 848	4.3%	4.1%
			All countries1
Population density (inhabitants/km2)	13	16	52	64
GDP per capita (USD in PPPs)	11 500	30 082	9 368	29 013
Trade as % of GDP	9.1	10.9	12.3	14.9
Agriculture in the economy			All countries1
Agriculture in GDP (%)	4.7	5.9	2.9	3.5
Agriculture share in employment (%)	13.7	8.3	-	-
Agro-food exports (% of total exports)	41.5	49.4	6.4	8.1
Agro-food imports (% of total imports)	5.4	10.9	5.8	7.3
Characteristics of the agricultural sector			All countries1
Crop in total agricultural production (%)	56.7	79.7	-	-
Livestock in total agricultural production (%)	43.3	20.3	-	-
Share of arable land in AA (%)	21.5	36.3	31.8	33.3

Note: *or closest available year.

1. Average of all countries covered in this report.

Sources: OECD statistical databases; International Labour Organisation (ILO); UN Comtrade; World Bank, WDI; FAO database and national data.

The Argentine economy began to stall when the peso came under pressure in April 2018. The value of the peso vis-à-vis the USD was reduced by 40% in 2018, and by 70% in the period 2018-21, and the economy plunged into recession and inducing annual inflation rates above 40%. Inflation has been escalating, with a rate of 133.5% in 2023 and the year 2024 marked by an inflation rate of 219.9%. Due to exchange rate controls, several exchange market rates exist in parallel, which have been increasingly diverging from the official rate. Adversely affected by COVID-19, GDP declined by 9.9% in 2020, increased by 10.4% in 2021 and 5.3% in 2022, decreasing again by 1.6% in 2023 and 3.9% in 2024. The contraction that started in mid-2022 was due to a severe drought and the accumulation of significant economic imbalances, and the effects of the macroeconomic stabilisation programme implemented at the beginning of 2024 (OECD, 2024[7]).

Argentina runs a significant agro-food trade surplus having exceeded USD 30 billion for most of the past decade and USD 45.6 billion in 2022. This surplus notably decreased to USD 24.9 billion in 2023. Most of agro-food exports (77%) are primary or processed products used as inputs in downstream industries abroad, whereas the much smaller bundle of agro-food imports is mostly composed of primary products for use by industry (79%).

Argentine agricultural production has grown at an annual rate of 1.7% between 2013 and 2022, like the world average. Within this total growth, 2.5% was due to an increased use of intermediate inputs and 0.2% was due to a primary factor growth. During the same period, Total Factor Productivity (TFP) decreased on average by 1.1%, well below the world average of 1.1%.

Agricultural nutrient balances in Argentina, particularly its average nitrogen balance, are comparatively low, albeit increasing. The shares of agriculture in energy use and in GHG emissions were, at 7% and 45% respectively in the period 2013-2022, well above the OECD average (2% and 10%, respectively), with the high emissions reflecting the large number of ruminants. Notably, the emissions share is well above the sector’s contribution to the economy.

Table 4.3. Argentina: Productivity and environmental indicators

	Argentina		International comparison
	1991-2000	2013-2022	1991-2000	2013-2022
			World
TFP annual growth rate (%)	1.7%	-1.1%	1.7%	0.8%
			OECD average
Environmental indicators	2000*	2023*	2000*	2023*
Nitrogen balance, kg/ha	-1.4	4.7	32.0	29.7
Phosphorus balance, kg/ha	1.7	1.9	3.3	2.5
Agriculture share of total energy use (%)	5.8	6.9	1.7	2.0
Agriculture share of GHG emissions (%)	53.4	45.0	8.7	10.1
Share of irrigated land in AA (%)	1.5	0.9	-	-
Share of agriculture in water abstractions (%)	71.2	74.1	47.0	49.5
Water stress indicator	..	..	8.7	..

Note: * or closest available year.

Sources: USDA Economic Research Service, Agricultural Productivity database; OECD statistical databases; FAO database and national data.

Historical trends in agricultural policies

Argentina has a history of macroeconomic instability and policy volatility, switching from open markets to import substitution in a way that has led to overall poor long-term economic performance (OECD, 2019[1]). The main exception has been the agricultural sector which, despite policy impediments, has innovated and grown. Driven by higher international agricultural prices, Argentine agriculture – in particular, in the extended Pampas region – has experienced a major structural transformation. This has been reflected in changing land use, the emergence of soybean as a major commodity, and diversified and growing export markets, especially toward Asia. However, outside of the Pampas, other crops like tobacco, cotton and fruits and vegetables have been less successful.

Argentina liberalised trade in the late 1970s and explored ways to increase trade with its neighbours and other economies from the second half of the 1980s. In the 1990s, the Argentine economy became more integrated in international trade, including the liberalisation of the agri-food sector, through the creation of Mercosur in 1991 and the 1994 WTO Agreement. However, after the financial crisis in 2001, Argentina reverted to increasing tariffs, establishing price controls for food products, and re-introducing export taxes on agricultural products such as soybeans to raise revenue and reduce basic food prices. Further export restrictions in the form of quotas for wheat, maize, milk, and beef were imposed in 2008. Between 2007 and 2011, a consumer price subsidy was implemented. The National Office of Agricultural Commercial Control (ONCCA) agency provided payments to processors purchasing wheat, maize, soybeans, and sunflower products from the local market.

In December 2015, the government began to gradually re-open markets again: it reduced export taxes on soybeans and soybean oil, eliminated export taxes on all other agricultural products, removed all export quotas, and free-floated the exchange rate of the Argentine peso to other currencies. But following the 2018-19 depreciation of the local currency and the subsequent economic recession, export taxes were re-established not only for agri-food products but for all goods by the government that had reduced or eliminated them. By early 2020, agricultural-specific export taxes were re-instated for most products in early 2020. Simultaneously, the exchange-rate controls introduced in the beginning of 2020 resulted in a widening gap between the official exchange rate and other market exchange rates, which reached a maximum of 89% in 2022. In 2024, the gap decreased to its lowest level since 2019 around a 10%.

Table 4.4. Argentina: Agricultural policy trends

Period	Framework	Changes in agricultural policies
Prior to 1990	Alternate free trade and import substitution policies	Price interventions on main agricultural products, mandatory public stockholding, export taxes on agricultural trade, tariffs on imports of agricultural inputs such as fertiliser, low levels of investment in private agricultural R&D and infrastructure in general. Several attempts to liberalise trade. Creation of agricultural R&D and extension services institute INTA (1956); private institutions such as AACREA (1960) and AAPRESID (1989) created to provide services to farmers.
1991-2001	Shifts to open the economy	Dismantling stockholding and price-setting public institutions, reduction of import and export tariffs, free trade agreements (Mercosur and WTO). Price stabilisation, reduction of barriers to trade, privatisation and deregulation of markets Dissolution of National Commercial Boards (1991). Creation of animal and plant health and food safety SENASA (1996). Creation of the seed regulatory institution INASE (1991).
2002-2015	Return to a closed economy	Implementation of export taxes, import restrictions, value chains subject to regulations as export quotas and price controls at the retail level. The National Office of Agricultural Commercial Control (ONCCA) dismantled (2011).
2016-2017	Gradual shifts to open the economy	Elimination of export taxes for all agricultural commodities, except reduced taxes on soybean exports. Elimination and reforms to the Register of Export Operations ROEs (2015). Federal Agricultural Council (CFA) reformed (2017).
2018-2023	Reintroduction of export taxes	Export taxes established for all exports including agriculture in response to the economic crisis of 2018. Reintroduction of specific taxes on agricultural products and exchange rate controls since 2019. Since December 2023, changes to export taxes are expected to be done by Law and cannot be done by decree. However, export taxes in place until then continued.
2024-Present	Gradual shifts to deregulation	Stabilisation programme implemented. The exchange rate gap was reduced. Export taxes continued to be defined by decree. Temporary reduction in export taxes for agricultural products.

Prior to the economic crisis of 2001, producer support fluctuated around zero. With the reintroduction of export taxes and other trade restrictions after the 2001-02 financial crisis, the PSE turned negative due to substantial negative market price support and absence of any significant budgetary support to farmers. Negative producer support peaked in 2014, reaching ‑38.6% of gross farm receipts. Lower export taxes in 2015 and 2016 reduced negative support. Budgetary support to farmers remained limited and mainly in the form of subsidies for tobacco. Around 60% of total expenditures on agriculture in the last ten years financed general services to the sector. From 2007 to 2010, Argentina provided subsidies to food processors (primary consumers), to compensate for high prices of agricultural products.

References

[4] ANSES (2025), Informe de Estadísticas de la Seguridad Social. III Tercer Trimestre 2024, ANSES, https://www.anses.gob.ar/sites/default/files/inline-files/Informe%20de%20Estadisticas%20de%20la%20SS%20III%20Trim%202024_0.pdf.

[3] ANSES (2024), Informe de Estadísticas de la Seguridad Social. III Trimestre 2023, ANSES, https://www.anses.gob.ar/sites/default/files/archivo/2024-02/Informe%20de%20Estad%C3%ADsticas%20III%20Trimestre%202023.pdf.

[2] Echeverria, R. (2021), A Note on Agricultural Productivity in Latin America and the Caribbean: A Call to Increase Investment in Innovation, https://globalagriculturalproductivity.org/a-note-on-agricultural-productivity-in-latin-america-and-the-caribbean-a-call-to-increase-investment-in-innovation/.

[6] Frezal, C. and A. Deuss (2025), “Trade-related measures linked to the environmental sustainability of agriculture: A stocktake and typology”, OECD Food, Agriculture and Fisheries Papers, No. 216, OECD Publishing, Paris, https://doi.org/10.1787/ebfdca09-en.

[7] OECD (2024), OECD Economic Outlook, Volume 2024 Issue 2, OECD Publishing, Paris, https://doi.org/10.1787/d8814e8b-en.

[1] OECD (2019), Agricultural Policies in Argentina, OECD Food and Agricultural Reviews, OECD Publishing, Paris, https://doi.org/10.1787/9789264311695-en.

[5] Subsecretaría de Ambiente (2024), Primer Informe Bienal de Transparencia de la República Argentina a la Convención Marco de las Naciones Unidas sobre el Cambio Climático, https://unfccc.int/sites/default/files/resource/IBT1%20Argentina_2024.pdf.

Notes

← 1.  See https://www.boletinoficial.gob.ar/detalleAviso/primera/307793/20240520.

← 2.  See https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/mercosur/eu-mercosur-agreement/text-agreement_en.

← 3.  Law 27 642, popularly known also as the “front nutritional labelling law”, was sanctioned in November 2021 in Argentina, and regulated in 2022 (Decree 151/2022).

← 4.  See https://www.boletinoficial.gob.ar/detalleAviso/primera/315665/20241017.

← 5.  See https://www.argentina.gob.ar/normativa/nacional/resoluci%C3%B3n-694-2024-400942.

← 6.  See https://www.argentina.gob.ar/agricultura/alimentos-y-bioeconomia/ogm-vegetal-eventos-con-autorizacion-comercial.

← 7.  See https://www.argentina.gob.ar/normativa/nacional/resoluci%C3%B3n-302-2024-399107.

← 8.  See https://www.argentina.gob.ar/normativa/nacional/resoluci%C3%B3n-5-2024-395847.

← 9.  See https://www.argentina.gob.ar/normativa/nacional/resoluci%C3%B3n-68-2024-405253.

← 10.  See https://www.argentina.gob.ar/normativa/nacional/resoluci%C3%B3n-50-2024-400701/texto.