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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