An article in Siglo21.com.gt quotes the president of Distribuidora Alcazarén, Mariano Vadillo Portabella, who said: "the problem is so severe, that there are smugglers do not even need to use front companies to break the law, but go from person to person making individual visits to offer their products at very low costs, although with risks to consumer health, as the products do not meet the relevant standards and may have been tampered with".
The 7 largest companies in the sector have joined forces to combat smuggling, which they claim is on a massive scale, undermining the competitiveness of registered companies, "It's hard to compete against those who do not pay a penny in tax, who evade not only import tariffs but also the ISR (Income Tax) and VAT (Value Added Tax), it is unfair competition. "
"The government is responsible for smuggling because taxes are too high. When taxes are lowered smuggling will be eradicated, it is clear that the higher the tax is, the more appetite there is for this illegal business", said Vadilla.
Central American Business Chambers call for stopping unfair trade in both directions between the two countries.
"We must, as soon as possible, stop the illegal movement of goods from Guatemala to the southern border of Chiapas, in order to be able to aspire to making progress on all our objectives in this new era of trade between Mexico and Central America," said Jose Mejia, president of the Central American Binational Union of Chambers of Commerce, Industry and Investment.
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