How effective has the regulation of labeling and taxes on sugary products been?

The director of the Latin American Alliance of Food and Beverage Industry Associations (ALAIAB), Camilo Montes, warned of the lack of evidence on the effectiveness of regulations such as front labeling and taxes on sugary products that, at the same time, represent a challenge in a region where 41 million people suffer from hunger.

In an interview with the EFE agency, within the framework of the 23rd annual meeting of ALAIAB, in Mexico City, Montes indicated that “none of the countries that have implemented these measures have been able to advance public health objectives”.

For example, he pointed out that Chile, which was one of the pioneers in labeling, in 2016, was the eighth country in percentage of obesityaccording to the Organization for Economic Cooperation and Development (OECD), and is now among the first two places, in competition with Mexico.

“So, facing the public health objective, there is no evidence that that is the route. However, from Mexico to Argentina, there is a permanent debate about how to further regulate the sector (…) that has historically worked hand in hand with authorities in health, production and others to guarantee the fight against hunger, food security, and ultimately, that food is available”indicated Montes.

Regarding tax regulations on sugary drinks and solid products, Montes indicated that scientific evidence has not demonstrated either. “that taxing food of any kind allows for better public health results”.

The Colombian specialist pointed out that at ALAIAB they know that throughout the region “Governments have fiscal challenges and need money to be able to fulfill the promises they have made, the expectations that citizens have in their work”and the private sector contributes by paying taxes so that these fiscal objectives are achieved.

“What we do not agree with is the idea that with fiscal policies food, some type of food or some type of beverages are classified as the culprits of scenarios such as obesity, and then (a tax is imposed on them so that “non-communicable diseases are not generated”he pointed out.

“No country in Latin America that has imposed this type of tax on beverages or solid foods has been able to advance in public health results, that is, there is no evidence to show that, but it does end up making food more expensive”Montes insisted.

This leads citizens to make decisions to face the cost of food, which is why many buy “the same thing, but more expensive, your pocket ends up tighter or not necessarily migrating foods and drinks with better nutritional profiles”he added.

He also pointed out that there is a shift towards informal consumption, towards street preparations, where there is no evidence that “This informal consumption is better nutritionally speaking than the consumption of products and foods and beverages developed by the industry”which goes through many State regulations.

Likewise, Montes warned of the risk of “experiment with the pockets of Latin Americans”as he recalled that in the region “there are 41 million people suffering from hunger.”

“Are you going to experiment with raising the price of food? If the evidence does not show us that this is the route, we do not agree,” he stressed. Montes highlighted that in the region a third of all the food produced is lost, and “If that food was not lost in Latin America there would be no hunger”.

EFE