Mexico: Elimination of import duties to stop food prices from rising.

On 17 May, the Mexican Government announced the elimination of import duties on products of 72 HS codes, initially for a period of one year, in an effort to stop food prices from rising. This measure is part of the Government’s anti-inflation plan, which had been announced on 4 May. In April, Mexico’s annual inflation rate stood at 7,72%.

Import duties will be eliminated on food items such as maize oil, rice, tuna, pork, chicken, beef, onion, jalapeño peppers, beans, eggs, tomato, milk, lemon, apple, orange, bread, potato, pasta, sardine, carrot, maize flour, wheat flour, white maize, sorghum and wheat, as well as live animals such as cows, pigs, goats, sheep, roosters, chickens, ducks, geese and turkey. Import duties that normally apply to these products range from 10 to 75%.

However, economists are skeptical about the measure, as most of Mexico’s imports are from countries such as the USA or Canada, with which it already has a free trade agreement, and that enjoy duty-free imports anyways.