Mexico seeks to tame tortilla prices by putting 50% tariff on white corn exports

Mexico introduced a temporary 50% tariff on exports of white corn used in basic food as it seeks to contain a spike in the price of tortillas, one of the country’s staples. 

The duty, which will be in place through June 30, seeks to guarantee that local production remains in the country and that white corn prices stabilize, according to the decree signed by President Andres Manuel Lopez Obrador and published Monday. Imports of grain used for human consumption will be exempted from tariffs.

White corn is a key source of calories in the diet of Mexican consumers, representing 89% of the country’s grain production, the decree said. On average, Mexicans consume more than 330 kilograms of white corn per person annually, it said. 

Mexico is struggling to contain a spike in food prices that led to inflation reaching 8.7% during the third quarter, the highest level in more than two decades. Last year, the Lopez Obrador administration reached an agreement with some of the country’s top businesses to contain the cost of basic goods by removing import barriers and red tape.