Mexico’s Petrochemical Sector Sees US$55 Billion Stall
MEXICO · ECONOMY & TRADE
Key Facts
- —What happened: Isaac Maya leads Mexico’s petrochemical workers’ union and says US$55 billion in projects sits stalled.
- —How big: Mexico’s petrochemical industry has shrunk from 5% of the economy in the 1970s to about 2% now.
- —What it means: Mexico must import large volumes of naphtha, ethane and other feedstocks it cannot produce at home.
- —The catch: That US$55 billion figure comes from one union leader alone, with no independent outlet confirming it.
- —Where: Maya raised the alarm at a labor forum in Tampico, attended by representatives from 60 companies.
A union leader says US$55 billion in planned Mexican petrochemical investment sits frozen over trade doubts and raw-material shortages.
Isaac Maya leads Mexico’s national union for chemical and petrochemical workers. He says US$55 billion in planned projects remains stalled.
Maya gave that figure to the newspaper Zócalo. No other outlet has independently confirmed the exact number.
Trade Doubts and Raw-Material Gaps
Maya blames two problems for the stall. He points to trade uncertainty and raw-material shortages alike.
Maya says Mexico must import large amounts of naphtha, ethane and other feedstocks. Domestic natural gas and refining capacity cannot cover current demand.
Naphtha and ethane are basic building blocks for making plastics and other chemicals. Without steady supplies, plants cannot run at full production strength.
Trade doubts add to the pressure too. USMCA is the trade deal linking Mexico, the United States and Canada.
Mexico calls the same deal T-MEC, its Spanish-language name. The US declined to renew it early in a July 2026 review.
That means annual reviews of the deal continue through 2036. Investors say the ongoing uncertainty makes long-term planning difficult.
The law firm White & Case says any of the three countries could still extend the deal early. That would lock in today’s rules for 16 more years.
A Shrinking Share of the Economy
Maya raised the alarm at a labor forum in Tampico. Representatives from 60 companies attended the event.
Maya said no layoffs have happened yet. He blamed the slowdown on global factors beyond Mexico’s control.
Altamira and Tampico anchor Mexico’s petrochemical sector in the Gulf Coast state of Tamaulipas, long tied to oil and gas. The two cities have held that role for decades.
Maya says the region could lead the country again. That would take fresh investment in new plants and pipelines.
The industry once made up 5% of Mexico’s economy in the 1970s. Today it accounts for roughly 2%, Maya says.
Business groups want faster clarity from both governments on trade rules. They say clear answers would unlock stalled investment more quickly.
Wider Investment Figures Add to the Concern
Mexico’s investment climate faces broader strains too. Reuters reported new foreign investment in Mexico fell 13% in the first half of 2026, from a year earlier.
Investment in brand-new factories fell nearly 50% last year. It dropped to US$24 billion, Reuters reported.
World Emblem is one example. The American apparel maker moved production to the Dominican Republic instead.
Pedro Casas leads the American Chamber of Commerce in Mexico, known as AmCham. He called the renegotiation uncertainty a real problem for investors.
Maya says the petrochemical sector needs the same thing: clearer trade rules and steadier raw-material supplies.
More: Mexico news in English, every day from The Rio Times.
Frequently Asked Questions
Why is US$55 billion in Mexican petrochemical investment stalled?
A union leader says trade uncertainty and shortages of key raw materials have frozen those planned projects.
Has independent reporting confirmed the US$55 billion figure?
No independent outlet has confirmed that number. It comes from union leader Isaac Maya, as reported by the newspaper Zócalo.
What is the USMCA trade deal, also called T-MEC?
USMCA is the trade deal linking Mexico, the United States and Canada. Mexico calls it T-MEC, with annual reviews now continuing through 2036.
Sources: Zócalo (Saltillo); Reuters; White & Case LLP.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
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