Effects of Legislation on Trade

For one who has never been to Mexico it may be unfamiliar the way that their markets and trade systems work. In the big cities and more developed locations it is quite similar to the united states although in the small towns tend to run somewhat differently. These smaller towns tend to depend more on agriculture as a living so many of the citizens of these pueblos are working out in the feilds themselves, then the produce is distributed in a variety of ways. As much of the diet in Mexico includes maiz, natually much of the produce planted, harvested, distributed, and traded is maiz. In local communities much of this maiz goes directly from los campos, or feilds, to the consumers door or to the farmers market. Sometimes the maiz is hauled around and sold by walking down the street shouting out and waiting for the customers to leave their homes and come out to you to pick up their needed produce.

This style of trade is a way of life to many of these people though it is seen as a problem, in some ways, to the government. The Complemento Carta Porte was put into place on May 1st 2021 by the Tax Administration Service (SAT) in Mexico. The SAT had experienced some issues regarding taxes on the informal economy where goods were being distributed without being taxed. The Carta Porte requires that all importation and exportation of goods that are in transit in any Mexican territory report information in advance to the Mexican government. This information will need to include documentation of what goods are being transported, where from and where to, mode of transportation, and shipper and receiver information. This all is in hopes of limiting contraband and collecting taxes(International Trade Administration, 2021).

This decision has an impact of the people of Mexico and United States alike although its effects are more direct in Mexico. There are many who do business with Mexico who have need of developing different trade methods and documentation, many locals now have requirements they did not previously have. The trade has an impact on many products, but more specifically on goods such as maiz since it thrived in the informal economy. This will have a ripple effect that will impact the lives of many.

International Trade Administration. (2021, September 17). Mexico new invoices and obligations (Carta Porte). International Trade Administration | Trade.gov. Retrieved April 2, 2023, from https://www.trade.gov/market-intelligence/mexico-new-invoices-and-obligations-carta-porte

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