By JOAQUÍN RIVERY TUR
Dock workers in the port of Rosario, one of the world’s major grain shipping ports, have agreed to lift the strike that paralyzed agricultural exports for seven days.
The work stoppage, a simple measure for higher wages, greatly benefited many large landowners belonging to Argentina’s purely right wing Rural Society (SR), allied to financial interests adversely affected by the country’s industrial growth since President Néstor Kirchner took office.
The dock workers’ decision to accept the government order to go to mediation was immediately welcomed by the workers, and that did not please these large landowners.
“La Rural,” as the Argentine press refers to the group of landowners and their export associates, are in all out war against President Cristina Fernández’ government as a result of its measures to increase export tariffs on grains – soy in particular – (Argentina is the top world exporter) and wheat, due to rising food prices in the world market resulting from certain grains being diverted into the biofuel sector. The United States is the biggest promoter of this conversion and it is provoking huge price increases, paid for, of course, by the poor.
The strikers only represent approximately 13% of all the employees working for the companies involved, but they managed to block supplies from entering factories in San Lorenzo, San Martín and Timbúes, where these companies own processing plants and port facilities.
The affected companies include Bunge, Cargill, Louis Dreyfus, Molinos, Noble, Vicentín and the Argentine Cooperatives Association (ACA).
The key issue is that the meteoric price rises of basic products represents huge profits for producers and exporters, who are not concerned about a reduced supply of goods in the internal market or spiraling prices, which are sharply affecting lower income groups.
In order to avoid the unchecked export of grains, the Argentine government decided to increase export tariffs in order to maintain supplies in the internal market and keep prices stable and within the reach of the population.
The current confrontation between the long-established right-wing landowners and official policy is nothing new, given that it erupted three years ago when the government decreed tax increases in order to secure supplies for the national market.
Currently, everything indicates that this new offensive mounted by the Rural Society is directed at preparing the ground for the upcoming presidential election in October, with the objective of unleashing all its economic power on a government that has reduced the foreign debt, achieved a level of social stability and reduced poverty, above all levels of extreme poverty.
As none of that interest them, landowners and exporters have now launched themselves into this war against the reelection of President Cristina Fernández (popularity rate of 60% and 44% in voting intentions, according to the Public Opinion Study Center, and no other candidate close to her), although, by the way, she has not as yet announced that she will run.
If she completely liberated exports, that could possibly win her a smile from SR members, who would rush to send as much grain as they could abroad, disregarding the damaging effect on the fragile household budgets of thousands of Argentines, particularly where wheat is concerned.
The government restrictions maintained for the last few years on wheat, corn and beef exports in order to avoid price increases in the domestic market have succeeded in containing prices, and have been successful. The gentlemen of the Rural Society are not going to forgive Fernández for their resulting profit losses, despite the fact that 2010 was a year of drought, which does not seem to have noticeably damaged the production of major exports, thanks to the policy pursued by the Ministry of Agriculture.
It should not be overlooked that in 2008, a similar dispute paralyzed export sales of grain for weeks, damaged economic performance and caused a crisis which had no significant consequences for the government.
The right-wing war on Cristina Fernández would seem to be beginning. A number of politicians have already announced their intentions to run in the October elections. It is much too early to make predictions.