Weekly Report - 8 November 2007 (INNS 1741-7422)

ARGENTINA | Social pact. Days after winning the presidential elections on 28 October Cristina Fernández de Kirchner set about trying to solidify a "social pact" between the private sector, the government and unions. The exact nature of this pact is somewhat vague but Fernández hopes to use it to contain inflation - a perennial cause of controversy - and to encourage greater investment by having companies accept smaller profit margins, while unions cap wage demands. Union bosses might not be too pliant. Hugo Moyano, the head of Argentina's largest umbrella union, the CGT, said the social pact could not put a ceiling on salaries. Meanwhile, the agricultural sector is up in arms over an announcement by the economy minister, Miguel Peirano, on 7 November that taxes on soybeans, the nation's biggest export crop, will be increased to 35% from 27.5%. The tax on corn will rise to 25% from 20%; and wheat to 28%, from 20%.

End of preview - This article contains approximately 287 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial