Mexico publishes anti-inflation decree easing sanitary controls and eliminating import duties
Mexico’s anti-inflation agreement eliminating import duties and easing sanitary controls was officially published on 19 October. Contrary to earlier official announcement, the scope of the Decree is not limited to 15 companies that signed the agreement, but to all companies that meet certain criteria.
Anti-inflation agreement
On 19 October the Decree about the anti-inflation agreement, announced on 3 October by Mexican President Lopez Obrador, and on which we reported on 7 October, was published in Mexico’s Official Gazette. The decree intends to control the price inflation for 24 basic consumption (mainly food) items through the elimination of import duties and sanitary controls. These food items include for instance beef pork and poultry meat, sardines, tuna, milk, eggs, potatoes, onions, carrots, potatoes, beans, oranges, lemons, apples, bell peppers, wheat, maize, rice, sorghum, corn flour, pasta, bread, and tomatoes.
Universal Single License
Contrary to what was announced by the President on 3 October, the Decree does not limit the import duty and sanitary inspection exemptions to the 15 companies that signed the agreement with the Mexican authorities. Instead, it stipulates that all companies that meet certain minimum criteria can apply to be registered in a special register created for this purpose and for a so-called ‘universal single license’ in order to benefit from the exemptions stipulated in the Decree. Among these minimum criteria are to have previously imported the goods in question and have a track record of compliance with sanitary regulations. The list of registered companies will be published by Mexico’s tax authorities. The tax authorities will also publish the operational rules of the Decree.
Sanitary requirements
In a meeting with Agricultural and Trade Counselors in Mexico, Director-General Dr. Trujillo of Mexico’s Sanitary and Phyto-Sanitary Authority SENASICA, stressed that the Decree does not eliminate any sanitary requirements or agreements in place between Mexico and its trade partners. Instead, it transfers some of the responsibility and risks related to non-compliance to the importing companies that decide to make use of the benefits granted by the Decree.
The policy will be in place from 20 October until at least February 2023, but could be extended to December 2023. Dutch food exporters that want to know more about the implications, are encouraged to contact the agricultural team of the Netherlands Embassy in Mexico-City.