Memorandum on Argentina's Decision to Eliminate Export Taxes on Soybeans and Soybean Products

May 14, 1987

Memorandum for the United States Trade Representative

Subject: Determination Under Section 301 of the Trade Act of 1974

Pursuant to Section 301 of the Trade Act of 1974, as amended (19 U.S.C. 2411), I have determined that suspending our investigation under Section 301 is an appropriate and feasible action in response to the decision by the Government of Argentina to eliminate export taxes on soybeans and soybean products. The United States Trade Representative initiated this investigation of Argentina's system of differential export taxes on soybeans and soybean products on April 25, 1986, in response to a petition filed by the National Soybean Processors Association on April 4, 1986.

I direct you as the United States Trade Representative to notify the Government of Argentina of my determination and to take any actions necessary to implement and monitor it. I also direct that the Section 301 proceeding be suspended temporarily until the Government of Argentina fully implements its decision, at which time I direct you to terminate the proceeding.

Reasons for Determination

In its petition, the National Soybean Processors Association alleged that Argentina's differential export tax system had caused an increase in exports of Argentine soybean meal and oil to third countries and a decrease in U.S. exports of these products. Currently, the Government of Argentina imposes a 15 percent export tax on soybeans, but only a 3 percent tax on soybean meal and oil.

Recently the Government of Argentina informed the United States Trade Representative that it had decided to eliminate the export taxes on soybeans and soybean products within 180 days. When implemented, this action will eliminate the practice under investigation.

This determination shall be published in the Federal Register.

Ronald Reagan

[Filed with the Office of the Federal Register, 12:05 p.m., May 15, 1987]

Note: The memorandum was printed in the ``Federal Register'' of May 18.