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LatinNews Daily - 05 October 2022

In brief: Mexico’s gov’t announces deal to reduce food prices

*Mexico’s President Andrés Manuel López Obrador has announced an agreement with food retailers, producers and distributors to combat rising food prices in the face of high inflation. The deal, known as the agreement to open up the market against inflation and high prices (Apecic), aims to reduce the maximum average price of the basic basket of food by 8% by 28 February 2023, from M$1,129 (US$56) for 24 products to M$1,039. It aims to do this by granting participating companies a single, universal license for the import and distribution of food and food packaging supplies, exempting them from all procedures and permits, including those of the national service for agrifood health, safety and quality (Senasica) and the federal sanitary protection agency (Cofepris), as well as the general import tax on foreign trade. Instead, the companies themselves will be committed to carrying out the necessary checks to ensure that food is of high quality and free of health risks. The government also announced that exports of white corn, beans, sardines and aluminium and steel scrap used for food packaging will be scrapped to ensure domestic supply. Companies participating in the agreement must also commit to not raising prices of corn flour used to make tortillas with the aim of reducing the average maximum price by 3%. The agreement is designed to strengthen the package against inflation and high prices (Pacic), which was introduced in May.

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