Reforms in the Mexican Petrochemical Industry Have Not Increased U.S. Investment

T-NSIAD-91-22: Published: Apr 16, 1991. Publicly Released: Apr 16, 1991.

Additional Materials:


Office of Public Affairs
(202) 512-4800

GAO discussed issues regarding U.S. investment in Mexico's petrochemical industry. GAO noted that: (1) although Mexico's petrochemical industry grew rapidly since its inception in 1950, a 1982 debt crisis sharply reduced investment in the industry, causing continued shortages in both investment funds and feedstock supplies; (2) the lack of investment jeopardized the adequate supply of Mexican natural gas, the primary raw material for the petrochemical industry; (3) insufficient investment funds made it difficult for Mexico to complete 21 investment projects to meet petrochemical demands; (4) Mexico depended on imported basic petrochemicals to supply its industry, since it lacked adequate installed basic petrochemical capacity; (5) reforms Mexico instituted to increase foreign investment included deregulating more chemicals, allowing 100-percent ownership of secondary plants, repaying capital funds with petrochemicals, and reducing bureaucratic delays for obtaining processing permits; (6) impediments to increased U.S. investment included world market conditions, insufficient feedstock, reversible petrochemical reforms, inadequate protection of intellectual property rights, and lack of formal investment protection; and (7) factors encouraging increased U.S. investment included the established manufacturing infrastructure, location, and the complimentary nature of U.S. and Mexican companies.

Nov 23, 2020

Nov 19, 2020

Oct 30, 2020

Oct 13, 2020

Oct 1, 2020

Sep 30, 2020

Sep 28, 2020

Jul 30, 2020

Jun 29, 2020

Jun 22, 2020

Looking for more? Browse all our products here