Price Control: More Products Threatened

Although at the beginning of the Cortizo administration it was announced that the price control system for the basic basket would be gradually removed, now the Panamanian president is threatening to add products that were already excluded again, if their prices rise.

Friday, January 10, 2020

On January 7, it was confirmed that the price control on 14 products of the basic family food basket would be extended for six more months, a measure that was rejected by the Panamanian business sector.

See "Price control: From Temporary to Permanent"

In mid 2019, when Laurentino Cortizo's administration began, the list of products subject to this control was 22, but the authorities who took over at that time decided to reduce it to 14. As a result of that decision, the country's businessmen were confident that the measure could be gradually phased out.

You may be interested in "Panama: No More Price Control?"

Currently, the list of products for which prices are controlled includes flank steak, ribbon steak, ground beef, whole chicken, rice, onion, yam, national potato, perita tomato, cassava, powdered milk, sliced bread, processed American yellow cheese and sausages.

The situation took an unexpected twist, as on January 9 Cortizo assured that he would not wait six months to make a decision, because "... wherever I see the price of any of the products that are no longer part of the price control rise ... at that very moment, I will include it again."

Cortizo explained to Prensa.com that "... I didn't like the combination of the increase in the minimum wage, with the rise in some products and that's why no more food was removed from the price control. There must be a balance and not always a sector must benefit."



More on this topic

Refusal to Extend Price Control

January 2020

Panamanian businessmen are opposed to extending price controls on 14 products in the basic family food basket for six months.

The list of products whose prices are controlled includes slank, ribbon steak, ground beef, whole chicken, rice, onions, yams, national potatoes, perita tomatoes, yucca, powdered milk, sliced bread, processed American yellow cheese and sausages.

Price Control: Products Excluded from the List

July 2019

From July 7, eggs, macaroni, beans, lentils, chop, shank, breast and tuna will no longer be part of the list of products whose prices are controlled in Panama.

The measure consisting of the regulation of 22 products of the basic basket, which was initially announced as transitory, became permanent in the country, since it began to apply on July 7, 2014, and during the Varela administration was extended nine times, leaving negative balances at the discretion of some sectors.

Panama: No More Price Control?

July 2019

The brand-new Cortizo administration announced that it will gradually eliminate the price control system for 22 products of the basic basket, in force since July 2014.

The measure, which was initially announced as temporary, became permanent in the country, as it came into force on July 7, 2014, and during the Varela administration it was extended nine times, leaving negative balances to the discretion of some sectors.

Panama: Price Controls Extended

December 2014

The government has announced that price controls on 22 basic products in the basket will be maintained throughout the first half of 2015.

From a statement issued by the Minister of Commerce and Industry of Panama (ICIM):

The Minister of Trade and Industry, Meliton Arrocha announced that as a result of assessments made on the results of Executive Decree No.