On December 21, 2023, President Javier Milei released Emergency Decree No. 70/2023 (“Decree 70”), that entered into force on December 29, 2023.

While emergency decrees are constitutionally required to go through Congress, they are binding until they are overturned.

Among other provisions, Decree 70 revoked Law No. 26,737 that set forth the “Regime for the Protection of the National Domain on the Ownership and Possession of Rural Lands” (the “Rural Lands Law”). The Rural Lands Law contained certain restrictions to foreign land ownership, which do not longer apply.

Separately, on December 27, 2023, the President sent to the Congress an omnibus reform (the “Omnibus Bill”) proposing certain changes regarding several environmental rules.

The implications of the derogation of the Rural Lands Law and the Omnibus Bill on the below selected matters are as follows:

I. Derogation of Rural Lands Law

The Rural Lands Law was passed with two main objectives: (i) determine the ownership and possession, under any title or factual situations, of rural lands; and (ii) with respect to foreign individuals and legal entities, set the limits to ownership and possession of rural lands.

By its derogation, foreign entities or persons are no longer bound to land ownership restriction.

II. Reform of environmental laws

  1. Land Burning: the Omnibus Bill amends Law No. 26,562 on the “Regime of Minimum Environmental Protection to Control Land Burning”. Namely, the Omnibus sets forth that the authorization for burning activities must be issued within a maximum period of thirty (30) working days following its request, otherwise it is considered as tacitly issued.
  2. Native forests: modifications to Law No. 26,331 on the “Regime of Minimum Environmental Protection to Native Forests” include the elimination of the prohibition to deforest native forests categorized as red or yellow, in turn allowing to carry out deforestation activities in such categorized areas.
  3. Glaciers: the Omnibus Bills specifies the scope of Law No. 26,639 on the “Regime of Minimum Environmental Protection of Glaciers”. In this regard, this law originally protected glaciers and the periglacial environment, while the Omnibus Bill indicates that its rules will apply to: (i) uncovered and covered glaciers in the glacial environment; and (ii) active rock or debris glaciers in the periglacial environment, located in Argentina, and that comply with certain conditions.
  4. Fertilizers control: the Omnibus Bill revokes section 6 of Law No. 20,466 on the “Control of Fertilizers” that established the obligation to inform in advance, to the appropriate agency, the commercialization of fertilizers in bulk.

 

For additional information, please contact Nicolás Eliaschev, Javier Constanzó, Daiana Perrone, Milagros Piñeiro, Pablo Arrascaeta, Florencia Martínez Trobbiani, Rocío Valdez, and/or Victoria Barrueco.