English

Mexico exempts toilet paper imports under PACIC

As of Thursday, Mexico exempted tariffs on toilet paper imports, as part of the Anti-Inflation and Deficiency Package (PACIC).

Essentially, the country is an exporter of this product, with marginal imports, but the measure was motivated by a certain degree of global shortages.

From January to November 2021, Mexican toilet paper imports were only US$2.6 million, of which US$1.9 million corresponded to the United States as origin.

Conversely, toilet paper exports from Mexico totaled US$122.7 million during the same period, with sales to the United States totaling US$105.1 million.

Other destinations for these international sales were Costa Rica, Guatemala, El Salvador, Honduras and Belize.

Toilet paper imports

In March 2002, Russia banned foreign sales of birch wood in retaliation for the sanctions imposed by the United States and the European Union following Putin’s incursion into Ukraine.

As a result, industry analysts project that between 800,000 and 1.2 million tons of pulp will be sold in international markets.

On Wednesday night, the Ministry of Finance and Public Credit (SHCP) issued a decree in the Official Journal of the Federation (DOF) exempting imports of 78 tariff items, including toilet paper.

In Mexico, consumer inflation at the end of the first half of 2022 was 8.0%, above the Bank of Mexico’s inflation target of 3.0% (+/- 1.0 percent) for the year, 0.6 percentage points higher than the consumer inflation target of 7.4% for 2021 and 4.8 percentage points higher than the consumer inflation target of 3.2% for 2020.

Annual core inflation, which better reflects medium-term price pressures on the economy, remained above the inflation target for the year and was 7.5% for the first half of 2022, higher than core inflation of 5.9% for 2021.

According to the Mexican government, the PACIC will benefit the households that have the least, as they are the ones who allocate a higher percentage of their spending to basic food basket products, according to the Monthly Report on the Behavior of the Economy for the month of May 2022, which the Technical Directorate of the National Minimum Wage Commission (Conasami) presented to the Council of Representatives.

 

Redacción Opportimes

Publicidad
Mostrar más
Botón volver arriba