Mexico pauses exports of scrap metal for food cans
Mexico has paused the export of scrap metal used for food cans, in a bid to curb prices.
The country’s government is aiming to cut the cost of 24 basic goods by cutting exports, reports Bloomberg.
Finance minister Rogelio Ramirez de la O said on Monday that they want to cut the price of the key goods by 8%.
The government will pause exports of goods including white corn, beans and sardines, as well as scrap metal used for food cans, Ramirez said.
It will also suspend requirements such as tariffs and other import barriers for firms that agreed to the deal.
The companies involved in the pact include supermarkets Wal-Mart de Mexico SAB, Grupo Comercial Chedraui SA and Organizacion Soriana SAB, as well as food producers such as Gruma SAB de CV, Industrias Bachoco SA and Sigma Alimentos SA.
“Unlike the US where inflation is caused by demand, in Mexico it’s due to supply,” Ramirez told reporters. “For that reason, the best response is to produce more food and cut regulatory and logistical costs.”