### Potential Price Increases for Goods If Border Decrees Are Not Extended: Canaco-Servytur Tijuana
**By Julieta Aragón | September 28, 2024**
Tijuana, B.C. — The costs of used vehicles, tires, clothing, footwear, among other products, are expected to rise, potentially leading to an “economic crisis” in commercial sectors unless the border decrees allowing for the definitive import of used cars and goods are extended, with their validity set to expire on September 30.
Julián Palombo Saucedo, president of the Tijuana Chamber of Commerce, Services and Tourism (Canaco-Servytur), highlighted concerns over the lack of promised extensions to fiscal stimulus decrees (VAT at 8% and ISR at 20%) by the government, despite assurances from President Andrés Manuel López Obrador’s administration. These fiscal measures are also set to expire in December.
The business community is exhibiting significant “nervousness” and “concern.” Without extending these three critical border decrees, the entire northern border’s economic landscape would suffer. The import decree currently allows a tax rate ranging from 0 to 5%; failing to renew could result in substantial price hikes on imported goods, ultimately impacting the end consumers.
Palombo Saucedo pointed out that if these decrees are not extended before the conclusion of President López Obrador’s term, negotiations would need to restart “from zero” with the incoming administration.
Despite delays, Baja California Governor Marina del Pilar Ávila Olmeda assured that Claudia Sheinbaum Pardo, the forthcoming president, would issue the decrees “in due course,” although the exact timing remains unknown. Governor Ávila added, “We still have three months; as we begin October, she will likely sign them.”
Previously, on April 25, Kurt Honold Morales, the Secretary of Economy and Innovation, promised that the federal government would sign the fiscal stimulus decrees by June, post-presidential elections. However, this has continuously been postponed with no explanations from either the Secretariat of Economy or the Federal Tax Administration Service.
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### New Development: Economic Impact if Border Decrees Lapse
Further extending the issue, local businesses stress the urgency of renewing the import decrees to prevent market disruptions.** According to a recent report, local market analysts forecast a ripple effect not only on consumer prices but also on the regional economy’s stability if these provisions lapse.
Stakeholders argue that the discontinuation of these decrees would derail affordable consumer access to imported goods, narrowing market diversity. Effects include a strain on small businesses dependent on cost-efficient imports, potentially leading to business closures and job losses.
Community leaders are advocating for immediate intervention by federal authorities to sustain economic health and prevent any adverse outcomes from the decree expirations.
**Source: Additional reports gathered from local economic forums and business briefings in Northern Mexico.
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