SourceMex

Document Type

Article

Publication Date

10-29-2008

Abstract

In what many consider a historic step toward changing Mexico's antiquated petroleum sector, the Congress approved legislation to overhaul the state-run oil company PEMEX. The measure was approved overwhelmingly in both houses of Congress in October, although there was some dissent within the ranks of the center-left Partido de la Revolucion Democratica (PRD). Some members of the PRD broke with their moderate colleagues because of opposition to a provision that allows PEMEX to hire private and foreign companies for key activities in the oil sector. Another key change that allows the company more control of its revenues received overwhelming support. But some critics say the reform plan, which was diluted from President Felipe Calderon's original proposal, is insufficient to help reverse Mexico's declining production. President Calderon first offered plan in April The proposal to overhaul PEMEX had been in the works since April of this year, when Calderon first introduced his plan to Congress. At that time, the plan met strong opposition, with legislators from opposing parties concerned that the proposal potentially violated the Mexican Constitution. Even with those concerns, Calderon pushed for the Congress to vote on the legislation to reform PEMEX in a special session during the summer months. Legislators rejected that proposal, saying they needed more time to consider an initiative with such far-reaching implications for the country. As legislators were considering the various proposals for PEMEX reform, a faction of the PRD along with allies from the Partido del Trabajo (PT) and Partido Convergencia por la Democracia (PCD) pushed to have Calderon withdraw his plan altogether. This group, which was allied with the PRD's ex-presidential candidate Andres Manuel Lopez Obrador, opposed any form of private participation in PEMEX.

Language

English

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