Colombia’s President Gustavo Petro said it would try to mitigate effects of the latest war in the Middle East and a recent Central Bank decision to increase interest rate.
In a televised address to the nation, Petro announced multiple measures to prevent increased food prices and an economic slowdown, and warned the government may declare an economic emergency if these measures prove insufficient.
In response to an expected global shortage in fertilizers, which may affect Colombia’s food production, Petro announced export tariffs on fertilizers produced by Colombo-Venezuelan state firm Monomeros.
According to the president, the Venezuelan government wants fertilizers produced in the Caribbean city Barranquilla “to go to the United States and not stay in Colombia.”
Petro said he ordered state officials to prevent this and said the Trade Ministry would impose tariffs on fertilizer exports and subsidize the production of fertilizers from domestic consumption.
All fertilizer produced in Colombia remains in the country to feed the Colombian people and is subsidized. Any exports of this product must be subject to a high tariff. Specific decrees will be issued in due course, but this is the immediate measure.
Gustavo Petro
Additionally, “the export of meat can’t continue,” said the president, claiming that meat exports to China are responsible for rising meat prices in Colombia.
We’re also going to take a firm stance here, in the livestock sector. Even though we’re sacrificing our trade balance, it’s better for food prices to go down—for meat prices to go down—for all Colombians, for all families. And that can’t be done if we continue to allow exports.
Gustavo Petro
Petro’s latest policy change seek to prevent an increase in prices of basic food products, which in turn could increase poverty among vulnerable communities.
In an attempt to maintain economic growth, the president announced subsidized credits for small and medium-sized business that could be negatively affected by recent interest rate hikes decreed by the Central Bank.
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