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PACIFIC ISLANDS REPORT Pacific Islands Development Program/East-West Center Commentary LEGISLATING PRICE CAPS IN PALAU AGAINST FREE ENTERPRISE By The Palau Chamber of Commerce KOROR, Palau (Palau Horizon, Nov. 20) – The Palau Chamber of Commerce during its Regular Board meeting outlined its official position on the proposed legislation to cap imported food mark-ups at 10 percent. Consistent with its views on free enterprise, restrictions on the mark-up of foods defeats the purpose of a free enterprise system and assumes consumers don’t make decisions on whether to buy higher or lower priced food items. There are many different retail locations a Palauan citizen can purchase canned tuna for instance. It is the choice of the consumer where and what price they are willing to pay. In order to be competitive, retailers are always looking for alternate suppliers to find the best deals for their customers. It is the consumers’ choice which retailer would best serve their needs. If a retailer consistently is the most expensive it will likely be out of business because no one would support it. Regulating companies and limiting them to uniform pricing and suppliers distorts the democratic principle of a free enterprise system. Laws restricting how a company manages its business goes against the very principles that motivate individuals who start businesses to make a profit. Protectionist legislation most often harms the individuals they seek to protect. The Palau Chamber of Commerce is an advocate of a free enterprise system driven by open market forces and not by laws. The Palau Chamber of Commerce was established in 1992 with over 170 registeredmembers. The Chamber provides individual business advisory services to small and medium-sized indigenous entrepreneurs, including the preparation of business plans and cases forfinance, and undertakes lobbying activities on behalf of the private sector. Marianas Variety |
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