Barack Obama, K Street lobbyists and the grab for Mexican oil

Canadian unions may have found an ally in their fight to stop the endless rush to privatization in the Americas: Barack Obama.

This particular battle involves the significant issue of energy. Over the past week, the Canadian Union of Public Employees (CUPE) and the Communications, Energy and Paperworkers Union (CEP) sponsored a trip to Mexico by two trade lawyers to lend support to efforts to stop the privatization of the national oil company, PEMEX.

Lawyers Stephen Shrybman and Hugo Neal-Leri, who've done substantial work for both unions, spoke at various events in Mexico City and Villahermosa (in the oil state of Tabasco) and met with opposition party politicians and workers from small independent unions. It was a trip to offer moral support. Rick Arnold, from the advocacy group Common Frontiers (another trip sponsor), calls what happens to PEMEX (Petróleos Mexicanos) "a litmus test" for Latin America.  His worst-case scenario would be the entire Americas being controlled by a handful of powerful energy companies.

Mexico has been a holdout. It would difficult to find a prouder moment in recent Mexican history than when President Lázaro Cárdenas nationalized the oil companies in 1938, kicking out interests including Rockefeller's Standard Oil. U.S. trade negotiators, with their energy working groups, have tried to reverse that decision since free trade talks began in the 1980s. Remember, the genesis of free trade lay with Corporate America, and not with politicians like Ronald Reagan or Brian Mulroney.

When Canada agreed to NAFTA clauses ensuring proportional energy sharing even in times of shortage, Mexico said, "No, thanks."

Now, it looks as if PEMEX could fall. It's not that Mexico has such a sweet deal over Canada; the country still imports gasoline for its citizens in spite of being the world's sixth largest producer of crude. Still, the symbol of PEMEX is important.

President Felipe Calderón is pushing Congress for what his PAN party calls "minor" privatization, a move opponents see as a vast sell-off. It means that 37 of 41 divisions would be open to outside contracting to companies such as Halliburton. (Yes, that Halliburton. ) The Washington-based think-tank Council on Hemispheric Affairs has published a background report on the situation.

Arnold says the ongoing debate in the Mexican Congress is critical for the battle against privatization in South America, notably Venezuela and Bolivia. He argues his group is not against trade but opposes NAFTA because, in his view, it ignores social and labour concerns. A recent document published by Common Frontiers offers further insight and sets up Democratic candidate Barack Obama as a potential ally. The report opens with a statement from his recent policy paper:

In Mexico, as in the U.S. and Canada, citizens and democrats wish to “close the revolving door between the executive branch and K street (corporate) lobbying …”. Mexicans are currently mobilizing to stop the deeply un-democratic practice of lobbyists [writing] national policies.

From Barack Obama’s Blueprint for Change

It would be be wise to remember that, during another presidential race, the major unions in the United States believed they could count on another Democratic candidate, Bill Clinton. They thought he would join them in opposing NAFTA but, despite hints to the contrary, he waited until after Labour Day in 1992 to announce his support for the deal.

Now Democratric presidential candidate Obama is looking good. He doesn't oppose NAFTA (apparently not any longer) but it was the clout of corporate lobbyists that gave us the trade deals in the first place. Taking on the K-Street lobbyists could define an Obama presidency. Their business includes the energy industry advocates who push U.S. President George W. Bush to open up national parks to drilling and water down environmental legislation. They currently have their sights set on PEMEX. The lobbying industry could be seen as the fourth pillar of the U.S. political system - and arguably the most powerful. Closing that "revolving door" will be no easy task for Obama - if he attempts it.