U.S.-Mexico energy

This paper reports that while Mexico's petrochemical industry has grown rapidly, it now faces shortages both in investment funds and in supplies of basic petrochemicals due to a financial crisis in the 1980s. Mexico has undertaken a series of policy reforms aimed at encouraging foreign and private investment, but these efforts have generally failed to entice U.S. investment in Mexico. U.S. petrochemical companies have cited unfavorable market conditions, insufficient basic petrochemical capacity in Mexico, concern about the reversibility of Mexican reforms, inadequate Mexican protection of intellectual property rights, and lack of investment protection for U.S. businesses as impediments to investment in Mexico. Cooperation between the two nations in overcoming these obstacles could help U.S. petrochemical companies maintain their positions in a competitive global market, while at the same time provide Mexico with much needed capital investment and technological expertise