Over a dozen retailers and food makers in Mexico have signed an agreement with Government Officials that waives specific regulatory requirements and general import tax in an attempt to secure rising food prices.
"The Government will suspend the review of any regulation that is considered to prevent or make the importation and entry of food or its movement within the country more expensive," said Finance Minister Rogelio Ramirez de la O in a radio interview.
Inflation in Mexico is at a 22-year high. Under the deal, there will be no other import costs or tariffs, and exports of white corn, sardines, and beans have been paused. The nation aims to become self-sufficient in the production of white corn, which is used in products such as tortillas.
"Only five percent of tortillas are sold in self-service stores or large chains like Walmart. The rest is sold in the more than 110,000 tortilla shops in the country," said Juan Carlos Anaya, director of the Agricultural Markets Consulting Group to ESM.
