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OECD Competition Assessment Reviews: Mexico

image of OECD Competition Assessment Reviews: Mexico

Many of Mexico’s product markets remain among the most heavily regulated in the OECD. These structural flaws adversely affect the ability of firms to effectively compete in the markets and hamper innovation, efficiency and productivity. Against this backdrop, this report analyses Mexican legislation in the medicine (production, wholesale, retail) and meat sector (animal feed, growing of animals, slaughterhouses, wholesale and retail) along the vertical supply chain. Using the OECD Competition Assessment Toolkit to structure the analysis, the report reviews 228 pieces of legislation and identifies 107 legal provisions which could be removed or amended to lift regulatory barriers to competition. The analysis of the legislation and of the Mexican sectors has been complemented by research into international experience and consultation with stakeholders from the public and private sectors. The OECD has developed recommendations to remove or modify the provisions in order to be less restrictive for suppliers and consumers, while still achieving Mexican policy makers’ initial objectives. This report identifies the potential benefits of the recommendations and, where possible, provides quantitative estimates.

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Executive summary

The OECD was asked by the Mexican government to carry out an independent policy assessment to identify rules and regulations that may hinder the competitive and efficient functioning of markets in two sectors of the Mexican economy along the vertical supply chain. These were medicines (production, wholesale, retail) and meat (animal feed, growing of animals, slaughterhouses, wholesale and retail).

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