Category: Mexico

Now I Understand the Full Court Press against AMLO

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There has been a steady drum beat of accusations against Mexican President Andrés Manuel López Obrador, in places like the New York Times.

My assumption is that AMLO is taking actions that generally favors the “Have Nots” over the “Haves”, and this is why we see alarm from the usual suspects.

I haven’t followed this closely, but his recent decision to replace the Bank of Mexico governor with one who favors people over finance is a very good indicator of where he intends to go:

President López Obrador said Friday that he will replace the current central bank governor with an economist who supports a “moral economy” — an economy in which the well-being of everyone is prioritized over the wealth of the few.

Speaking at his regular news conference, López Obrador said he won’t nominate current Bank of México Governor Alejandro Díaz de León for a second term after it concludes at the end of November.

López Obrador, a fierce critic of the neoliberal economic policies he says were implemented by successive governments during the 36 years preceding his arrival in the National Palace, said he would instead nominate an economist with “a lot of prestige” who is better attuned to Mexico’s social needs.

And this is Mild Compared to the Trans-Pacific Partnership

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The WTO has just ruled that requiring the labeling of dolphin safe tuna is an unacceptable restraint of trade:

International trade deals like the Trans-Pacific Partnership (TPP) need to be carefully examined piece by piece because they can take precedence over a country’s own laws.

Case in point: the World Trade Organization (WTO) on Friday ruled that dolphin-safe tuna labeling rules — required by U.S. law, in an effort to protect intelligent mammals from slaughter — violate the rights of Mexican fishers.

As a result, the U.S. will have to either alter the law or face sanctions from Mexico.

I wrote a few weeks ago about how the “investor-state dispute settlement system” baked into trade agreements can force countries to compensate corporations when regulations cut into their profits.

The long-running quarrel over tuna reveals another way that domestic laws can be overturned by trade agreements: when countries can file trade challenges on behalf of domestic industries.

“This should serve as a warning against expansive trade deals like the Trans-Pacific Partnership that would replicate rules that undermine safeguards for wildlife, clean air, and clean water,” said the Sierra Club’s Ilana Solomon in a statement.

This short of crap is a feature of trade deals, not a bug.

They Will Be Back

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Small farmers in Mexico have managed to block a law to legalize Monsanto’s seed monopolies:

Progressive small farmer organizations in Mexico scored a victory over transnational corporations that seek to monopolize seed and food patents. When the corporations pushed their bill to modify the Federal Law on Plant Varieties through the Committee on Agriculture and Livestock of the Mexican Chamber of Deputies on March 14, organizations of farmers from across the country sounded the alarm. By organizing quickly, they joined together to pressure legislators and achieved an agreement with the legislative committee to remove the bill from the floor.

What’s at stake is free and open access to plant biodiversity in agriculture. The proposed modifications promote a privatizing model that uses patents and “Plant Breeders’ Rights” (PBR) to deprive farmers of the labor of centuries in developing seed. The small farmers who worked to create this foundation of modern agriculture never charged royalties for its use.

Although the current law, in effect since 1996, pays little heed to the rights of small farmers, the new law would be far worse. Present law tends to benefit private-sector plant breeders, allowing monopolies to obtain exclusive profits from the sale of seeds and other plant material for up to 15 years, or 18 in the case of perennial ornamental, forest, or orchard plants–even when the plants they used to develop the new varieties are in the public domain.

The legislative reform would extend exclusive rights from the sale of reproductive material to 25 years. Further, it seeks to restrict the rights of farmers to store or use for their own consumption any part of the harvest obtained from seeds or breeding material purchased from holders of PBRs.

The bill wasn’t defeated, it just didn’t pass, so this is a temporary victory.

Monsanto and its ilk will come back again … and again … and again until they get their bill.

Swine Flu Update

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The caveat here is that the only country with enough cases for any real data is Mexico, and their public health system is awful, so the numbers are suspect, and there are a lot of untreated TB, asthma, and HIV, but it appears that most of the deaths so far have been young adults.

This may just be an artifact of the fact that Mexico is missing cases, etc., but it could point to an immune system response known as a Cytokine storm it was the reason that Spanish Influenza in 1918, and SARS more recently, disproportionately effected young adults.

Mexican Oil Industry Legislation Update

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I think that it’s fairly clear that the right wing PAN is attempting a back door privatization of Pemex, the state own oil producer, while the PRD sees any change as an theft from the Mexican people, and the PRI falls somewhere in between.

The problem is that Pemex has not been run well, and it is lacking resources as a result, so some sort of reform is necessary.

I still believe that purchasing the necessary expertise, as opposed to “risk sharing partnerships” that are a back door way of privatizing the system, are the way to go.

Mexican State Oil Company Threatens to Drill Outside of Mexico

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Bloomberg.com: Exclusive: “Pemex May Drill Outside Mexico for First Time If Reforms Fail”

Pemex needs foreign help because it doesn’t have the technology to drill in water deeper than 500 meters (1,640 feet), he said.

Pemex may need foreign help, but it does not need a partner.

It can buy that expertise without a foreign partner. Oil field services companies like Slumberger (disclosure) can do this on a fee for service basis.

And it turns out that their “threat” is to do a partnership with Petroleo Brasileiro, which has more deep water experience.

They are trying to get through with a bill that will allow “partnerships” that are ownership in everything but name, because someone gets the fat “commissions” for brokering the deals.

Mexico Revamps Justice System

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Mexico has completely revamped its justice system, the high points are:

  • The presumption of innocence (I guess they must have continued the Code Napoléon from their brief time as a French posession).
  • Public trials.
  • Allowing lawyers to argue orally before judges (it was all written briefs before).
  • Improvements to the public defender system.
  • Gives state and local police departments the power to investigate their own corruption, which had previously been an exclusively federal purview.

All in all, it looks like major improvements, though considering the starting point, this is not difficult.

I agree with the civil libertarians who are concerned about the 80 days detention without charge though.

This is Not About Oil Production, It Is About Privitization

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I was wondering how long it would take, but the PAN and its ilk have been salivating at the possibility of privatizing Mexico’s state owned oil industry for decades, and now they are trying to make public theft of state assets a reality.

State ownership of the oil industry is a core value of the Mexcan body politic, so much so that there is a national holiday to commemorate the nationalization of the industry. It is considered to be a pillar of national sovreignty.

The reason that PAN loves the idea of privatization is because it will provide the opportunity to generate huge salaries and consulting commissions to the pale skinned Mexican elites who went to university at places like Harvard and Brown.

The facts are simple:

  • Mexican oil production is dropping.
  • Mexican oil revenues are at an all time high because of high oil prices.
  • It cost nothing to leave unexplored oil where it is right now.
  • There is no need to rely on big oil for the technical expertise to get at that oil.

When the Oil industry downsized and consolidated in the 1980s and 1990s, thousands of petroleum engineers and the like were without jobs, and many of them found positions with the oil services industry, which now arguably more technically capable than the big oil.

If they want these fields developed, the Mexican government could contract with companies with Halliburton and Slumberger*, and get the job done without signing over future earnings. What’s more they would get more local employment out of it, because big oil tends to employ lots of expats to get the job done.

The claims that Pemex “lacks the money and expertise” to get this done are driven by a desire among Mexican conservatives to sell $100 of oil for $1 today, because them and theirs will get an additional 50¢ in sweetheart deals.

Pemex does have problems, but these can be fixed.

*Full disclosure, one of my step mom’s life long friends is one of those Slumbergers.