North American Investment Fund
The North American Investment Fund Act (S 3622) was introduced June 29, 2006, in the U.S. Senate, 109th CONGRESS 2d Session, by Senators John Cornyn (R-Texas) and Norm Coleman (R-Minnesota).
The purpose of the Act is:
- "To authorize the President to negotiate the creation of a North American Investment Fund between the Governments of Canada, of Mexico, and of the United States to increase the economic competitiveness of North America in a global economy."
The bill was read twice and referred to the Senate Committee on Foreign Relations.
Contents
Overview
The Act is intended to help Pemex [1], Mexico's state run oil company, get money to develop its offshore hydrocarbon resources. Through the auspices of Robert A. Pastor and the North American Energy Working Group [2], they posit that this money will be used for infrastructure development and social funding in Mexico. Expectations are that Pemex will require $200 Billion dollars to develop its hydrocarbon resources.
In the April 26, 2006, hearing before the U.S. House of Representatives Committee on International Relations Subcommittee on the Western Hemisphere, Pastor outlined the "amounts expected to be invested by all parties":
- "North America is different from Europe, but it should learn from the experience, and establish a North American Investment Fund that would invest $20 billion per year for a decade to build roads to connect the south and center of Mexico to the United States.
- "Mexico should provide half of the funds; the U.S., 40%, and Canada, 10%. The funds should be administered by the World Bank. To make best use of these resources, Mexico needs also to undertake fiscal, energy, electricity, and labor reforms. However, instead of making the aid conditional or waiting for Mexico to do the reforms, the three leaders should decide how each would contribute to the community’s goal of narrowing the gap. This approach could give Mexico the leverage to undertake the reforms."
Jorge Castañeda, Mexico’s ex foreign relations secretary and the architect of the Guanajuato Proposal was superceded by Dr. Jose Luis Alberro director of the Law and Economics Consulting Group in developing the Mexican Development Fund. This fund would receive its money from oil revenues from Pemex operations thru the World Bank. [3]
Where will the money be used?
One thing we also should impart is that the money is to be used for roads in Mexico. Are you wondering which roads and highways will be invested into? Maybe look at the North American Corridor coming from the Port of Lazaro Cardenas in the State of Michoacan, Mexico.
The following is taken directly from the NASCO website:
- "The 2,661-mile KCSM operates the primary rail route in northern and central Mexico, linking Mexico City and Monterrey with Laredo, Texas, where more than 50 percent of the U.S.-Mexico trade crosses the border. The line also connects the major population centers of Mexico City and Monterrey with the heartland of the U.S. and serves the ports of Veracruz, Tampico and Lazaro Cardenas, a primary alternative to West Coast ports for shippers in the route between Asia and North America."
The KCSM is part of the Trans Texas Corridor which will directly link up with Mexican highways and railroads using the NASCO model.
Related SourceWatch Resources
External links
- North American Energy Working Group, Office of Policy and International Affairs, U.S. Department of Energy, undated.
- North American Energy Working Group, Natural Resources, Government of Canada.
- Robert A. Pastor, "A North American Community. A Modest Proposal To the Trilateral Commission," Toronto, Ontario, Canada, November 1-2, 2002.
- Dr. Jose Luis Alberro, "A Mexican Development Fund financed by oil revenues. Putting the Guanajuato proposal to work." Paper presented at the Forging North American Energy Security Conference, Monterrey, Mexico, April 1-2, 2004.
- U.S. House of Representatives Committee on International Relations Subcommittee on the Western Hemisphere, April 26th, 2006 (page 114).
