Panama and the (eternal?) Price Controls

For the fifth time the Varela administration has extended the measure regulating the maximum prices of retail of 22 products in the basic basket, until July this year.

Monday, January 9, 2017

From a statement issued by the Ministry of Economy, Trade and Industry:

The national government has extended, starting from January 7 2017, the temporary regulation of maximum prices for sales of 22 products in the basic food basket (CBA by its initials in Spanish) known as price controls, taking into consideration the positive results from the immediate reduction of CBA costs, giving Panamanians greater access to necessities. 

The measure was adopted by Executive Decree No.13 of January 6, 2017 published today in the official newspaper La Gaceta, extending for a period of six additional months the validity of Executive Decree No.165 of July 1, 2014.

More on this topic

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.

The Never Ending Price Controls in Panama

January 2018

For the seventh time since 2014 the Varela administration has extended the measure that regulates the maximum retail prices of 22 products in the basic basket, up until July 2018.

From a statement issued by the Presidency of Panama:

The Price Control measure continues to offer great economic benefits to Panamanians.  If not implemented in 2014, by instruction of President Juan Carlos Varela, the basic food basket would cost B/. 394.15 balboas, that is to say, B/. 80.04 more than what is currently paid for the 22 controlled products.

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.

"No paper stops the Laws of the Market"

October 2014

The private sector in Nicaragua is opposed to the bill which intends to regulate the prices of 8 of the 53 products in the basic food basket.

The bill introduced in the Assembly intends to implement measures similar to those applied in Panama since July by the Varela administration, which have distorted the production and marketing of the products it covers, according to entrepreneurs from that country.