Oil exploration issue splits Mexico

Leftist party decries Calderon's proposal to enlist foreign firms in deep-water drilling.

By Héctor Tobar and Marla Dickerson, Los Angeles Times Staff Writers March 27, 2008

MEXICO CITY -- Mexico's oil has long been a source of national pride. Now, with reserves dwindling away, President Felipe Calderon has floated a controversial initiative to rescue the government oil giant, Pemex: allow foreigners to help the company drill for oil.

The debate over "energy reform" has split Mexico's political class, with the left threatening national civil disobedience to stop Congress from considering it and a key centrist ally of Calderon withdrawing its support.

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This story is significant because the oil industry has been one full of controversy. Allowing other companies to help in the search for oil is a very big decision.

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Mexican Wave Gets Revenge

March 28, 2008 12:00am

TREAD warily, Kevin Rudd.

While the Prime Minister and his new best buddies, the Labor premiers, are rejoicing after Wednesday's love-fest in Adelaide, Mr Rudd risks a voter backlash as he jets off on his 18-day global odyssey.

Already some of his senior colleagues are predicting the PM will find some convenient excuse to cut short his five-country tour.

We will see.

Opposition leader Brendan Nelson is right, though, to question the wisdom of spending so much time away, during the lead-up to Labor's first Budget.

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This story is significant because Mr. Rudd is doing something that he has planned on helping him but is now potentially hurting him.

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Mexico plans water supply boost

President Felipe Calderon said the government would invest $21bn (£10.6bn) to expand supply networks and to improve drainage and water treatment.

The aim was to work for the sustainable development of Mexico, he said.

A key challenge is Mexico City, home to 20 million people, which suffers both water shortages and flash floods.

"There is an imbalance between the availability of water, population growth and economic development," said President Calderon as he unveiled the investment programme during a visit to the state of Hidalgo.

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President Calderon wants to invest 21 billion dollars to improve drainage and water treatment throughout Mexico. Water drainage and water treatment are two of the bigget problems facing Mexico at this time due to poor water availability and flooding.

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Mexican stocks jump 1.6 pct on Bear Stearns news

MEXICO CITY, March 24 (Reuters) - Mexican stocks jumped in early trade on Monday as news that JPMorgan Chase & Co had quintupled its offer to buy Bear Stearns Cos buoyed investor sentiment.

The benchmark IPC rose 1.6 percent to 29,528 points, with bellwether telecom America Movil leading the rally. (Reporting by Michael O'Boyle; Editing by James Dalgleish)

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This story is significant because the stocks in a country can influence the country itself greatly. The economy can either be helped, such as in this case, or hurt which happens often as well.

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Mexico's Ruling Party Delays Proposal for Energy Bill

March 24 (Bloomberg) -- Mexican President Felipe Calderon's National Action Party delayed plans to unveil a bill that would open up the state oil industry to private or foreign investment.

Calderon's government or allied lawmakers will present an energy bill in 10 to 15 days, said Hector Larios, leader of the party in the lower house of Congress. The reform proposal had been planned for release by the end of March.

The delay has allowed opposition politicians, led by former presidential candidate Andres Manuel Lopez Obrador, more time to criticize the government's plan by calling it a sale of the nation's oil riches. That resistance, as well as objections by some members of the Institutional Revolution Party, or PRI, may be pushing Calderon's party to soften its proposal.

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President Calderon delayed plans for a bill that would open the Mexican oil industry to private or foreign investment. Calderon and his lawmakers will present a new energy plan in the next ten to fifteen days.

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Mexico, China May Extend Tariffs on Chinese Textiles

March 10 (Bloomberg) -- Mexican President Felipe Calderon said his government is in talks with China to reach a settlement over tariffs on Chinese textiles and other products currently as high as 1,000 percent.

The negotiations were disclosed by Calderon today at a gathering of textile industry executives in Mexico City.

In December, Mexico announced a plan to keep duties on Chinese textiles, toys and shoes while it reviews the imports for possible unfair trade practices. The tariffs, in place since 1993, don't meet World Trade Organization rules. Mexico said last year that it is allowed to keep the import duties while it completes the review.

``We have a very positive expectations that we will reach a satisfactory agreement with China,'' Calderon said.

An agreement that keeps some duties on Chinese imports would boost the industry and save jobs, said Rafael Zaga, former president of the National Chamber of the Textile Industry, at the same event.

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Mexico is currently trying to negotiate tariff agreements with China over textile imports. This would boost the Mexican job industry and save jobs.

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Mexico's new justice

The Mexican Congress has approved an overhaul of the country's judicial system, which is so rife with corruption, caprice and ineptitude that many doubted such a day would ever come. The reforms require a constitutional amendment to take effect, meaning they must be ratified by 17 of Mexico's 31 states. If the overwhelming support of legislators is an indicator, they should pass with ease.

Under the current system, based on Roman and Napoleonic codes, lawyers submit their cases in writing, and judges come to their decisions in secret. Under the new system, defendants would be granted the presumption of innocence, trials would be open to the public and lawyers would present oral arguments, among other welcome changes. Another provision, however, would permit organized crime suspects to be held for up to 80 days without being charged. This is particularly worrisome because Mexico's definition of organized crime is an illegal undertaking by three or more people. And trials for such suspects would still be conducted in secret. The potential for abuses and for a two-tiered justice system to emerge is enormous.

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An overhaul of the corrupted Mexican judcial system has recently been approved. This new change states that in order to make a constitutional ammendment, 17 of the 31 Mexican states must approve.

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Mexican Worker Money Transfers Drop at a Record Pace

March 5 (Bloomberg) -- Mexicans working abroad, mostly in the U.S., reduced money transfers to their families at home at a record pace in January as a U.S. housing slump squeezed construction employment.

Remittances, the second-biggest source of dollar flows into Mexico after oil exports, fell 5.9 percent in January to $1.65 billion from a year earlier, the central bank said today. It was the biggest decline since Banco de Mexico began records in 1995.

The drop may crimp spending by Mexican families and reflects weakness in U.S. construction, the biggest employer of Mexico's migrants. Wal-Mart de Mexico SAB, the nation's largest retailer, fell for the first time in three days in Mexico City trading.

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The amount of money transfers from the United States to Mexico is in its biggest decline since 1995. Many Mexican families with members working in America will be hurt by this decline in money transfers.

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Mexico's Insurance Association Sees 9.9% Growth In 2008

MEXICO CITY -(Dow Jones)- Mexico's insurance industry premiums will likely grow 9.9% this year to 208.39 billion pesos ($19.48 billion), Recaredo Arias, the general director of the country's insurance association said Monday.

The growth would fall short of last year's 11.9% rise to MXN190.3 billion, and could be affected if the U.S. economy fares worse than expected, Arias said at a press conference.

Sustained growth in the sector has been brought about in recent years thanks to overall economic growth and low inflation, the association, known as Amis, said in a press release.

Arias said Amis is beginning to benefit from efforts to increase use of insurance in Mexico, and aims to increase the value of its premiums as a percentage of gross domestic product, or GDP, to 5% between 2015 and 2020, up from just under 2% at the end of 2007.

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This story is very important because the GDP in Mexico is expected to increase to 5% in the next few years.

Mexico's Plan to Open Oil Industry Lacks Support

Feb. 28 (Bloomberg) -- Mexican President Felipe Calderon's plan to overhaul energy laws and allow private investment in the state oil monopoly lacks political support, a prominent opposition senator said.

Senator Francisco Labastida of the Institutional Revolutionary Party, an opposition group, said ``there's no chance'' that ``comprehensive reform'' will pass. He spoke in an interview today at the senate building in Mexico City.

Failure to open the oil industry may mark the biggest political defeat yet for Calderon, who managed to win support for cutting pensions and raising taxes since taking office in December 2006. Mexico, the third-largest oil supplier to the U.S., needs the help of foreign and private companies to halt a decline in crude output and reserves, Calderon has said.

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Opening the oil industry would be a huge success for Calderon and Mexico and if it does not work out Mexico could be osing a lot of economic advantage.

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Mexican government announces $5.6 billion economic stimulus package

11:46 a.m. March 3, 2008

MEXICO CITY – President Felipe Calderón announced a 60-billion-peso ($5.6 billion) package of tax breaks, utility-rates discounts and spending programs Monday to help Mexico's economy weather the slowdown in the U.S. economy.

Companies will get a 3 percent income tax break for the next five months and 10- to 20-percent electricity rate reductions, as well as credit from development banks and an increase in infrastructure spending to help them overcome the effects of what Calderón called “an adverse international environment.”

“Since last year, the economic performance of our principal trading partner (the United States) has show signs of deceleration,” Calderón said at a ceremony to announce the package. “The problems in its financial sector and housing market make its prospects for growth in 2008 not very encouraging.”

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This article is very important because it is very important that Mexico not allow their economy to decrease because of the United States economic downfall.

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