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Weekly Report - 10 July 2008 (ISSN 1741-7422)

ARGENTINA: Government scores pyrrhic victory over farmers

President Cristina Fernández triumphed over the farming unions when the lower chamber of congress voted, by a very narrow margin, to approve her government's agricultural reform bill, including the contentious variable export tax on soya and sunflower products. The government, however, will be licking its wounds. It had to exert enormous pressure on recalcitrant deputies and make countless concessions to ensure the reform's passage. Even then it was only just enough: the bill passed by seven votes. The outcome was a big setback for Néstor Kirchner who has lost control of the Partido Justicialista (PJ) only weeks after assuming the presidency with the aim of buttressing support for his wife's government.

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