President Cristina Fernandez de Kirchner canceled a farm export tax increase Friday after months of devastating protests and a stunning rejection by Argentina's Senate.

The announcement ends a four-month conflict that disrupted exports by a major grain-producing nation, caused sporadic domestic food shortages and dented international confidence in the government of Fernandez, who succeeded her husband, Nestor Kirchner, as president in December.

"A lot of people out there were worried that the Kirchners were going to take Argentina down the path of confrontation," said Juan Carlos Hidalgo, project coordinator for Latin America at the Washington-based Cato Institute. "But now we're seeing a more pragmatic and conciliatory approach."

Cabinet Minister Alberto Fernandez said the government will abide by Thursday's Senate vote rejecting the tax package. The vote itself was not enough to cancel the tax increase because it was issued by executive order.

Get $150+ in coupons in every Sunday N&O. Click here for convenient home delivery.