Eat the State!  Vol. 7, Issue #19   21 May 03

It's About (Mexico's) Oil

A majority of Mexicans believe the United States invaded Iraq simply 
to acquire its valuable oil reserves. They are also beginning to 
suspect that the powers that run America have designs on Mexico's oil 
as well.

As the daily newspaper La Jornada recently asked rhetorically, "If 
they cited non-existent threats just to get ahold of Iraq's 
petroleum, what won't they do to appropriate ours?" It isn't lost on 
Mexicans that, while Iraq's oil is halfway around the world from the 
thirsty colossus, Mexico's oil is conveniently right next door.

And these thoughts aren't confined to conspiracy theorists or the 
gringophobic left anymore. Thanks to the efforts of the US Congress' 
"Committee on International Relations," Mexico, from left to right, 
is up in arms over the increasing belligerence emanating from the 
empire across its northern border.

On May 8, the committee, controlled by Republicans, voted along party 
lines to tie reform of US immigration laws with a requirement that 
Mexico open up its state oil company, Petroleos Mexicanos (Pemex) to 
US corporate investors.

Pemex was created in 1938, after President Lazaro Cardenas 
nationalized Mexico's petroleum, to the continuing consternation of 
US oil companies and the continuing celebration of Mexican citizens. 
The current President, Vicente Fox of the right wing PAN (National 
Action Party) attempted to privatize Pemex, along with other public 
properties, early in his administration, but has been forced by 
public resistance to repeatedly declare that "Pemex is not for sale," 
and has reiterated it a couple of times since May 8. Apparently not 
satisfied with Fox's vehemence after the latest incident, Rosario 
Robles, leader of the leftist Democratic Revolution Party (PRD) told 
the cowboy-boot-wearing, macho Fox to "hitch up your trousers and 
defend our petroleum."

Meanwhile, the Fox government has been skirting the touchy issue of 
"privatization," by opening the oil infrastructure, to private 
investment through programs to modernize its facilities. By alarming 
Mexican public opinion, the heavy handed approach of the Republicans 
has likely done more harm than good for American corporate efforts to 
acquire greater control over Mexico's oil.

What is perhaps not inaccurately being called the "Halliburton 
Amendment," began as a completely different resolution attached to a 
routine funding bill for the State Department, known as the Foreign 
Relations Authorization Act. Its sponsor, Democratic Congressman Bob 
Menendez (NJ), said that his amendment, calling on the Bush 
administration to act on its long stalled promise to reach an 
immigration accord with Mexico, offered an "opportunity to recognize 
the worth of the farm worker in the south and southwest, who puts 
food and vegetables on our dinner table." It was, he said, "a chance 
for dignity and human rights," and an opportunity "to improve our 
countries' relationship" by pursuing "a series of migration 
initiatives over the course of the next six months to a year."

Instead, the Republican majority, under the leadership of Committee 
Chairman Henry Hyde of Illinois, hijacked the amendment and replaced 
it with one of their own, offered by Rep. Cass Ballenger of North 
Carolina. This amendment declares that "Pemex, the Mexican state 
monopoly, is inefficient and plagued by corruption. It needs a 
substantial reform of private investment in order to offer sufficient 
petroleum production to Mexico and the United States to nourish 
future economic growth. This, in turn, would slow down illegal 
immigration to the US."

That Pemex is both corrupt and in need of reform will find little 
argument in Mexico. Embroiled in a scandal dubbed "Pemexgate," the 
state-run company is accused of illegally funneling millions of 
dollars to the PRI (Institutional Revolution Party) during the 2000 
election campaigns, in an attempt to maintain that party's seven 
decade stranglehold on political power. But Congressional suggestions 
that US energy companies are the key to reforming Pemex are met with 
responses ranging from derision to disgust. Facing upcoming 
congressional elections in July, the PAN's leader, Luis Bravo Mena 
called the US plan, "inopportune, unreal, imprudent, unfeasible, and 
a non-starter" (and that's just the opinion of the pro-privatization 
right wing).

Carlos Fernandez-Vega, business writer for La Jornada, wrote on May 
12 that Pemex could hardly compete with US energy companies like 
"Enron and Halliburton," when it comes to "misappropriation, 
accounting fraud, stock fraud, influence trafficking, and conflicts 
of interest."

President Fox, on his official website, says that "negotiation of an 
immigration agreement between the United States and Mexico has been a 
priority of his administration since he first took office. But there 
is no way that the negotiation of such an agreement will be made 
contingent upon the opening of Petroleos Mexicanos to foreign 
investment."

And slightly more recently is the news that eighteen illegal 
immigrants have died of asphyxiation in the back of a semi-trailer in 
Texas after being abandoned by their coyotes. Just one more pile of 
bodies to add to those from years before, and years to come, while US 
politicians use immigration reform as a political tool and bargaining 
chip--or in this case, what the head of the Mexican Catholic Church, 
Cardinal Norberto Rivera Carrera calls simply, "blackmail."

What more could the US government do, apart from standing on the 
rooftops and shouting to the four corners of the world, that when it 
comes to "human rights," it is indeed, all about oil.

--Troy Skeels

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