ABSTRACT

The petrochemical industry in Mexico is divided into two branches--basic and secondary--in accordance with legislation passed in 1958 and modified in 1970. Once basic petrochemicals were included as part of Petroleos Mexicanos's activities in 1958, the industry's main objective was to attain national self-sufficiency in the majority of the basic products required by the secondary petrochemical and other productive sectors. This chapter presents an analysis of the policies and programs related to the basic petrochemical industry together with their scope and limitations. It describes the origin and growth of the industry from its beginnings in the late 1950s until the mid-1970s. The chapter explores the industry's evolution from 1976 to 1983, with particular emphasis on the manner in which policies and programs influenced its development, other factors conditioning its expansion, the results obtained, and the most important problems arising during this period.