Mexico: Government of Mexico Program to Combat Food Price Inflation and Scarcity

The Government of Mexico (GOM) has announced a program to combat food price inflation and scarcity titled “Paquete Contra la Inflacion y la Carestia (PACIC).” Along with PACIC, President López Obrador announced a plan to maintain “fair prices” for the basic food basket, through a voluntary agreement with the private sector, without the use of mandatory price controls. The PACIC plan calls for a six-month suspension of import tariffs on 21 staple items and five basic commodities for food processing. The program also includes steps to support increased production of grains by subsistence farmers, including bolstering fertilizer production for use by small producers. Also under PACIC, the enforcement date of the Carta Porte tax on transport of goods within Mexico will be delayed until October of 2022. This report provides an unofficial translation of the GOM’s public presentation of PACIC.