AMLO government studies increasing import quotas to reduce inflation

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The measures that the Mexican government is analyzing are intended to increase competition in the market, as it did with products such as chicken, pork, beef and gas, the official explained.

The government of Mexico is studying the use of international trade tools, such as an increase in import quotas for some foods, to help reduce the inflation that does not subside in the Latin American country, said on Friday the Secretary of Economy, Tatiana Clouthier.

Consumer prices in Mexico have far exceeded the central bank’s official target of 3% +/- one percentage point in recent months.

Annual inflation in Mexico accelerated slightly in the first half of July to 5.75%, but the movement was contrary to market expectations, which expected a reduction to 5.65%.

The measures being analyzed by the Mexican government would be aimed at increasing competition in the market, as it did with products such as chicken, pork, beef and gas, explained Clouthier, in an interview with Bloomberg in Washington.

“(Inflation) has to do with the demand that is occurring not only in Mexico but in the world,” said Clouthier. “We spoke with the central bank a week ago and we are following closely to see what else can be done,” Clouthier said in the interview.

President Andrés Manuel López Obrador had said earlier this month that he could seek additional imports of corn to control the rising prices of tortillas made from this grain, the country’s main staple food.

The official closed on Friday a work tour in the US capital that began on Tuesday, in which she met with legislators and officials linked to trade between the two countries, whose total exchange of goods amounted to almost 540,000 million dollars in 2020, according to official data. 

Source: forbes.com.mx

Mexico Daily Post