Economic Reform in Mexico
Mexico’s congress approved a bill to end a 75 year state oil monopoly
and generate as much as $20 billion in additional foreign investment a year.
The nation’s most significant economic reform since the North American Free Trade Agreement, secured the required two thirds majority vote on Friday December 13, 2013
The proposal must be ratified by state assemblies, the majority which are
controlled by the alliance backing the reform.
The bill will change Mexico’s charter to allow companies such as Exxon Mobile
Corp and Chevron Corp to develop the largest unexplored crude area after
the Artic Circle.
Supporters say the overhaul could propel Mexico into the top 5 crude exporting
countries while opponents say that it will funnel resource wealth to foreign investors.
“The reform will energize Mexico’s economy”, said Carlos Capistran, chief economist at Bank of America Corps in a telephone interview.
