Mexico is kicking off the construction of its $7.7 billion (150 billion peso) oil refinery amid a call by President Andres Manuel Lopez Obrador for the country to become self-sufficient in energy production.
The nation “depends too much on buying foreign gasoline,” the president, commonly known as AMLO, said at an event Sunday in Paraiso, Tabasco, where the seventh refinery will be built. The bidding process for the six phases of the refinery begins at the end of June.- READ MORE: worldoil.com. Is the new Oil Refinery good for Mexico but bad for American Business?
This comes as Trump plans to put tariffs on Mexico for, in Trump’s words, Mexico has not done enough to stem the flow of illegal immigration. No word yet if the cancellation of the new refinery project would help stop any tariffs from taking effect on the 10th of June or if they would be part of any new “Trump Deal”.
The Mexican government tried to defuse a major trade conflict with Washington on Friday, The rushed meeting comes amid a chaotic 48 hours, in which Trump defied numerous aides and ordered them to impose tariffs on Mexico.
Veteran leftist Lopez Obrador, who took office in December, predicted that Trump, who is also engaged in a worsening trade war with China, would ease up on his demand.
“I tell all Mexicans to have faith, we will overcome this attitude of the U.S. government, they will make rectifications because the Mexican people don’t deserve to be treated in the way being attempted,” Lopez Obrador told reporters.