May 20, 2008, 16:05 GMT
Buenos Aires - Argentine farmers' unions declared a renewed truce in their strike against high export tariffs: from Wednesday, they will cease to block the export of cereal and other key products like soya and they intend to negotiate with the authorities.
In a joint document under the title 'The countryside wants solutions,' farmers said late Tuesday that they will suspend their strike, but they stressed that they remain 'alert and mobilized.'
In order to prevent exports, farmers had for the past ten days been blocking lorries taking produce to port. In March, a complete blockade of agricultural produce caused severe shortages in large urban areas.
Farmers' federations have already held negotiations with the government led by centre-left President Cristina Fernandez de Kirchner, without coming to an agreement some six weeks after the beginning of the strike.
The protest was sparked by an increase in the export tariffs for soya and sunflower. The tariffs introduced in early March get higher as the international price of produce rises. For example, if the price of soya were to rise above 600 dollars a tonne, the state would claim almost all of the surplus.
Argentine farmers have enjoyed prosperous years based on the increase in the price of foodstuffs on global markets.
The blockade of agricultural exports is very expensive for the Argentine government, since it draws a large part of its tax income from export tariffs.
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