May 18, 2022

Mexico to waive import duties for beef, chicken, pork and other staples to curb inflation

The Mexican government said it will waive import duties for beef, chicken, pork, and other food staples including livestock to curb inflation, which is currently at an over 20-year high, Reuters reported.

Import duties will also be suspended for on imports of live cattle, pigs, sheep, goats, and chickens.

Gabriela Siller, an economist from Banco Base, said the measures would only have a minor influence on inflation because the products exempted accounted for roughly 11.4% of the consumer price index. She said it would put further strain on government budgets.

Siller said that the measures, when combined with government budgetary support to keep gasoline costs low, amounted to nearly 2% of gross domestic product.

The administration said that the waiver on household essentials will begin on May 18 and last for a year. It said that the waiver on livestock imports will take effect pending approval by Mexico's foreign trade commission.

The measures could be extended for one more year.

-      Reuters