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
In 2016, a project to review two key sectors of the Mexican economy was launched. Making use of the methodology in the OECD Competition Assessment Toolkit, over 228 pieces of legislation were analysed in order to assess costs and benefits of regulations restricting competition in the medicine and meat sectors and proposed specific recommendations for change.