Mexico up in arms over oil privatization plans

Mass demonstrations against possible privatization of
state oil co.

The Real News

Thousands of Mexicans took to the streets of Mexico City on Sunday to
protest an oil reform bill they say would lead to the privatization of the
country's state-run oil company. Led by opposition lawmaker Andres Manuel Lopez
Obrador, the demonstrators expressed their displeasure with plans to look for
private capital to help fund the expansion of Pemex, Mexico's
national oil company.

Professor Gustavo Indart of
the University of Toronto specializes in the study of economic reform
in Latin America.

Transcript:

VOICEOVER: Thousands demonstrated on the streets of Mexico City on Sunday in protest against
Mexican President Filipe Calderón's recent oil reform bill. Led by opposition
lawmaker Andrés Manuel López Obrador, protesters rallied against the bill,
which would allow the government's state oil company, Petróleas Mexicanos, or
PEMEX, to seek foreign help to boost sagging production. Obrador and his
supporters view this as a move toward privatization and a threat to national
sovereignty.

ANDRÉS MANUEL LÓPEZ OBRADOR, PARTY OF THE DEMOCRATIC REVOLUTION (SUBTITLED
TRANSLATION): We are willing to take the consequences of the political fallout
if by that we can prevent the privatization of oil.

VOICEOVER: Mexico's
constitution bars most outside involvement in its nationalized oil industry.

GUSTAVO INDART, CENTER FOR INTERNATIONAL STUDIES: The oil industry in Mexico is
something that most Mexicans feel very strongly about. To many it's the symbol
of the revolution. The oil industry was nationalized in the early 1930s. That
certainly created a sentiment of more independence, particularly from the US. And this
sentiment certainly has continued over time. So the privatization of Pemex
certainly would be very difficult to do directly. What could be done and has
been done with other industries is to start step by step in order not to create
very large negative reaction all at once. When we see these demonstrations that
are being organized by López Obrador certainly has great support, but not as
much as would be expected.


VOICEOVER: Professor Indart added that as President Calderón's privatization
agenda becomes clearer, it is likely more people will protest his oil reform.