A national biofuel law comes into affect in February in Argentina to promote biofuel exports by imposing a low export tax of five percent on biofuels such as soy-based biodiesel compared to the much higher export tax of 24 percent on crude soy oil. Argentina has its eye on the large biodiesel export markets of Europe and the U.S. but domestic demand is also guaranteed to grow via the Argentinean Biofuels Act which mandates a minimum of five percent biofuels blended into the nation's petrol and diesel fuels by 2010. Brazil has similar legislation in place requiring a minimum of two percent biofuels in domestic diesel fuel by 2008.
Analysis: Biofuels exports are allowing nations with large agricultural sectors to gain a share of the global energy market and the stakes are huge. Expect Brazil to eventually match the Argentinean tax breaks to ensure their farmers share the same opportunity to export biofuels to Europe and the U.S.