Panama: Price controls extended to 2016 as sanctions add up

Panama’s Union of Industrialists (SIP) issued a statement against the government’s announcement of a third extension to their Price Control scheme. The measure, originally intended as a temporary adjustment, has been seen as acquiring a veneer of permanence.

The SIP’s statement points out that, while politically seductive, the application of price controls over 22 basic foodstuffs, as well as other regulatory restrictions, could become potentially dangerous for Panama’s free market economy. The SIP’s call was supported by the Panama Chamber of Industry, Agriculture and Commerce (CCIAP), which likewise called for an immediate lifting of the measure.

The Price Control scheme has already raised $1.2 million dollars in fines across the country. In 17 months from the start of the measure, Panamanian authorities have inspected 37,000 businesses, with fines levied on 7,000 agents over various irregularities.

Source: Panama America

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