Buenos Aires  - Argentine President Cristina Fernandez de Kirchner suffered a severe blow Thursday, when a controversial bill to increase agricultural export tariffs was rejected in the Senate with the decisive vote against of Vice President Julio Cobos.

In the early hours of Thursday, 36 senators voted for the government proposal- which had already been passed in the lower house of the Argentine Congress - while 36 voted against it. As Senate president, Cobos then cast his unlikely vote.

The Argentine government's move to significantly increase tariffs on soybeans and sunflower by decree met with the fierce opposition of the country's powerful farming sector. The political opposition gradually joined the agricultural sector, whose demands became a focus of criticism to the government.

"The president will understand me because I do not think a law that fails to solve the problem is useful. Let history judge me," a visibly nervous Cobos said at the end of a
35-minute speech before the Senate.

Debate lasted over 17 hours.

The resolution to increase tariffs in accordance with the price of produce in international markets was launched on March 10. For soybeans - for which Argentina is the third-largest producer in the world and exports over 95 per cent of its production - tariffs increased from 35 to 47 per cent, based on the current price.

The government subsequently modified its proposal in favour of smaller producers, and presented a plan setting aside the extra funds obtained from the tariffs for specific social programmes. However, farmers' opposition was unrelenting, and the government's last concession - to send the decree to Congress for approval - backfired.

The resolution remained in place Thursday, although it was expected to be revoked in accordance with the vote in Congress.

"There are some that say I had to vote in favour for the sake of institutional cohesiveness. I do not think that is a reason to put at risk the country, governability, social peace. I want to remain the vice president of all Argentines," Cobos said, to stress he would not resign. (dpa)