President Bukele made a strong announcement to stop price increases that in some cases reached 40%. Why economists believe it would not be effective.
The President of El Salvador, Nayib Bukele, announced that it will suspend tariffs on imported basic food products for 10 years, seeking to mitigate sharp price increases. But Producers and economists questioned the measure because they say it would encourage food imports instead of boosting national production.
“I will send a proposal today [al Congreso] to suspend tariffs on all products in the expanded basic basketas well as 70 other food products, for a period of ten years,” Bukele reported on his X network account.
However, economist Rafael Lemus, a critic of Bukele, said that this measure will be “ineffective,” because Most foods do not pay import duties. “Ineffective measure, most have a 0% tariff rate,” wrote Lemus in X, also stating that Bukele “encourages importing versus producing locally.”
El Salvador imports 90% of legumes, vegetables and fruits, According to official data, a large part of cereals, oils and milk are also consumed.
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Bukele’s strategy with supermarkets
Last week, Authorities began inspections in supermarket chains after Bukele ordered combating corporate “mafias” due to rising prices of food. According to the Consumer Protection Agency, some products have accumulated increases of up to 40% in one year.
The mandatary opened mobile agricultural markets to promote direct sales and avoid intermediaries in search of containing the increases.
In a radio and television broadcast, Bukele urged “importers, wholesalers, distributors and food marketers” to stop “the abuses.” “Stop abusing the Salvadoran people.” [con los precios] or not to complain later,” he said then.
Source: Ambito
