June 27 (Bloomberg) -- A plastic penguin 10 meters (33 feet) tall and wearing Argentina's presidential sash towered over the plaza outside Congress in Buenos Aires yesterday. Across the square, an inflatable bull with red eyes and black snout glared back.

The face-off marks a new phase in the biggest anti- government protests in Argentina since 2001, as supporters and opponents of President Cristina Fernandez de Kirchner's proposed increase in farm export taxes summoned larger-than-life mascots to their cause.

The bull is nicknamed ``Alfredito,'' or ``Little Alfred,'' after Alfredo De Angeli, a farm leader from Entre Rios province who has become an icon of the 108-day dispute. The penguin is a reference to Fernandez and her husband, former President Nestor Kirchner, who hail from the windswept Patagonian province of Santa Cruz, where the penguin is ubiquitous.

``This government is doing things for the poor that no government has done,'' said retiree Carmen Giliberti, 70, as she took in the scene near a tent set up by the Peronist Youth Movement, which supports Fernandez. ``The farmers are multimillionaires who don't want to share their wealth with the rest of the country.''

The debate erupted after Fernandez introduced a new variable tax on exports of grains and oilseeds in March. Fernandez says she needs the taxes to build new hospitals and help the poor in South America's second-biggest economy.

Government `Wasting' Money

``What the government supporters are saying are lies,'' said Nicolas Facio, 19, an engineering student at the University of Buenos Aires. ``Instead of raising more taxes, they should be using our money wisely, not wasting it.''

The rally of about 1,000 people, which is continuing today, marks a benign turn of events, at least for now. Farmers previously blocked roads for weeks, halting grain and soybean shipments, as talks with the government foundered and food shortages spread. Residents of major cities, including Buenos Aires, took to the streets banging pots and pans in support of the farm groups.

The bull and the penguin first appeared June 25. People dressed up as eggs came by that evening to express support for the government. Yesterday, the bull and the penguin were joined by an inflatable dove adorned with articles from the constitution.

Children lined up alongside the floats to have their photos taken while volunteers sipping mate, a traditional herbal drink, handed out leaflets supporting their cause. Eight tents have been set up in the square, seven in support of the government and one backing the farmers.

Guitar, Corn

Inside the farmers' tent, the wall was filled with notes of encouragement. Outside, a guitarist strummed away next to an open sack of corn. At the Peronist Youth Movement tent, two flat panel televisions played a DVD recounting Kirchner's rise to the presidency in 2003.

Congressional debate on the measure will continue for two or three weeks, Argentine Cabinet Chief Alberto Fernandez said in an interview with Radio 10 yesterday.

``This is the first time that there was a real dialogue here, where one side was listening to the other,'' opposition lawmaker Federico Pinedo told reporters after the first day of debate by the committees that oversee budget and agricultural policy.

Claudio Gonzalez, a 36-year-old cotton farmer from the northern province of Chaco, took photos of his daughter running among dozens of live pigeons in the plaza. Gonzalez said his parents have looked after his farm for the past two months while he's been in Buenos Aires lobbying against the taxes.

``I hope they can resolve this soon,'' Gonzalez said, pointing to the tents lining the plaza. ``It would be better for all of us.''

To contact the reporter on this story: Bill Faries in Buenos Aires wfaries@bloomberg.net;

Last Updated: June 27, 2008 12:00 EDT