Economy Politics Local 2025-11-25T19:38:29+00:00

Argentina Government Grants Tobacco Export Quota to US Company After Layoffs

Argentina's government made an exception for US tobacco company Alliance One by granting it an export quota for tobacco to the US. This decision came after the company laid off 120 employees at its plant in Jujuy province, even though it failed to submit the required paperwork on time.


Argentina Government Grants Tobacco Export Quota to US Company After Layoffs

The National Government has enabled a United States company with the export tariff quota for tobacco to that country after firing 120 workers. This is the tobacco company Alliance One, which buys tobacco grown in more than 35 countries and provides services to cigarette manufacturers in more than 90 countries. At the beginning of November, it fired 120 workers from its collection plant located in Perico, Jujuy province. According to what the Argentine News Agency was able to find out, a month before the layoffs took place - on October 13 - the company had to appear in the bidding process for the tariff quota. This allows for the export of tobacco to the United States and has been in effect since 1995. Tobacco companies that are in a position to sell tobacco to the United States must access this quota. The Secretariat of Agriculture annually enables a registry of firms interested in doing so. The truth is that Alliance One did not appear with the tariff quota, despite being one of the leading tobacco distributors. Of those enabled, only five companies appeared to export during the 2025/2026 commercial cycle: the Tobacco Cooperatives of Jujuy, Misiones and Salta, as well as Bompland Leaf S.A. and Comercial Industrial Misionera Argentina S.A. The American company did not submit the corresponding papers, so it was not on the list allowed to export tobacco. That is why in Resolution 235/2025, co-signed by Secretary Sergio Iraeta, Alliance One was enabled with the exporter quota, which was considered an exception. The regulation states that it is “an exceptional authorization for its re-registration for the 2025/2026 cycle” and highlights that Alliance One “has participated uninterruptedly in the tobacco tariff quota to the United States of America”. “The Argentine regulation applicable to said quota does not imply a quota allocation per applicant. Therefore, there is no full reduction in the tons of the other members of the quota,” it was indicated.

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