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In 2007, Argentina started to participate in the global biofuels market, with its first biodiesel exports to Europe, taking advantage of her capacity and her position as largest soybean oil producer in the world. Besides being one of the largest corn exporters and owning large sugarcane processing plants, Argentina also has the potential to reach bioethanol markets. National legislation imposes a 5% biofuels blend by 2010 and promotes their use for electricity generation too. The consumption of these renewable energy sources would contribute to change the actual energy model -based 90% on fossil fuels- and also to reduce gasoil and natural gas deficits. Moreover, small agricultural producers from different regions of the country would receive benefits from their biofuels production: a share guaranteed for the national market as well as tax exemptions. Paradoxically, producers lack financial assistance for their investments, they cannot compete with low locally fixed fossil fuel prices and face the uncertainty of the price which biofuels would receive from the authorities for local blending. A consequence of this is that actual biodiesel production is concentrated among a few big oil companies located in Rosario and is then exported. This study is based on recollected information and interviews with different actors of the biofuel sector. This presentation emphasizes the lack of compromise from the State to change not only the Argentine energy model based on hydrocarburates, but also the agro-export productive model, in order to promote real opportunities of development for small producers. It also reports about the impact of this issue on territorial and socioeconomic inequity. 1