Medicines: Price Control Rejection

The business sector in Guatemala rejects the measure of the Ministry of Economy, which establishes maximum sales prices to the consumer for certain pharmaceutical products, while the state of disaster decreed by covid-19 lasts.

Wednesday, September 2, 2020

On September 1, a Government Agreement was published in the Diario de Centroamérica, in which the government decided to control the prices of several medicines, arguing that the health of the inhabitants of the Nation is a public good and that institutions are required to ensure its conservation and restoration.

After the details of the interventionist measure were known, the Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations (Cacif) issued a statement in which it explained that setting maximum prices is not the solution, since this limits the quality of the products, causes shortages, famine and the black market.

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The Cacif's statement dated September 1st emphasizes that "... it is imperative to identify and sanction speculators and hoarders, as well as to generate the right conditions for the medicine market."

"The only way to achieve competitive prices is to lower barriers to promote competition and improve procedures for registrations and other practices that, for the time being, limit the free market in Guatemala," concludes the document of the union.

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