Price control: From Temporary to Permanent

The measure initially defined as transitory, became permanent in Panama, since the beginning of the Varela administration has been extended nine times, leaving negative balances in some sectors.

Tuesday, January 8, 2019

Juan Carlos Varela will close his administration with a new extension of the controversial measure that regulates the prices of 22 products of the basic basket, affecting several sectors, including meat producers, who report economic losses.

The president of the National Cattlemen's Association (Anagan), Aquiles Acevedo, said to that "... In the last four years, meat and pork producers have lost $52 million. Considering that they are losing $13 million per year for the inclusion in the price control of five cuts of meat (rump steak, ribbon steak with bone, prime ground meat, shank, chest with rib), which represent 30% of the carcass."

The article adds that ".... That is why producers asked to be taken out of price control regulation as the measure has further increased the meat problems of farmers."

Read full article (In Spanish).

More on this topic

What Price Control Really Generates

April 2019

The price control policy of the basic basket that has been implemented in Panama for some years is discouraging the local production of goods, since it is not profitable for companies to produce at a price lower than the balance price.

The measure to regulate the maximum retail prices of 22 products of the basic basket, began in 2014 and its validity has been renewed each semester, with its last extension in January of this year.

Panama: Price Control Until June 2016

December 2015

Despite complaints from the private sector, the government has announced that it will maintain the measure on 22 products from the basic basket during the first half of 2016.

President Varela announced that they are considering to include more products in the list of controlled prices, a measure which in January will be extended until June 2016.

Price Controls Start in Panama

July 2014

A decree establishing the maximum retail price and the maximum margin for sales of 22 basic food products has been made ​​official.

Amid criticism from the private sector and consumer advocacy organizations, President Varela signed the decree by which the prices of 22 basic food items are controlled, including topside steak, sirloin steak, milk, bread and eggs.

Panama: Proposal to Regulate Prices of Basic Foods

May 2014

President-elect Juan Carlos Varela has announced plans to establish price controls on food products in the basic basket.

The purpose of the measure, which would directly affect the prices of rice, cheese and meat and other products in the basket is to minimize the cost of living and prevent speculation on the part of suppliers.

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