José Medina Mora, president of the Employers’ Confederation of the Mexican Republic (Coparmex), applauded that the initiative is voluntary, while monitoring the evolution of prices will allow determining whether six months will be enough to have a positive impact on prices of the products considered within the basic basket.
“The announcement that 21 of the 24 products (of the basic basket) have a zero tariff, allows products such as corn or rice to be imported, without the tariff and then prices immediately drop because costs fall. The effects with the increase in production are medium-term, they will not be seen from one day to the next. These are planting seasons where, if we actually manage to increase production, prices drop and there are conditions for the country to produce more corn, fertilizer and natural gas, that will help prices drop in the medium term,” declared when leaving the National Palace, after the announcement,
The president of Coparmex added that a regulatory improvement is also necessary, while strengthening road safety is also important, since the increase in theft of merchandise raises prices, issues that the private initiative brought to the table during the conversations with the government to outline the plan.
Medina Mora considers price monitoring to be another success, meanwhile, he announced that meetings will be held with the Secretaries of Finance, Economy, as well as Profeco, to evaluate the results and decide where the measure will be oriented, that is, if it will require a shorter or longer execution time compared to the six months considered.
Chedraui turns and joins the pact
Directors of the Chedraui retail chain were also present during the presentation of the plan, after Antonio Chedraui, general director of Grupo Chedraui, said last week in a conference with analysts that these measures usually affect the supply of products and, in the long term, generate price increases and stress in the market.