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tv   Washington This Week  CSPAN  December 21, 2013 6:00pm-6:31pm EST

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through within a reasonable. of time. once you have a greater -- inipation by private the system and want to lower the cost of these natural gas for combined cycle
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, it is a self-regulatory institutions regarding those .opics that they have to make a report to the ministry of energy. it will have the participation of the ministry of energy. the us-mexico transboundary agreement cleared because of the budget deal.
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while is at the state department, we thought that would be the first baby step to cooperate with mexico on safety in the gulf of mexico. we have certainly learned a lot about safety at least in the deep water as oil spill prevention, it'll still mechanisms. -- oil spill mechanisms. we will have some bilateral hemispheric cooperation. want to underscore that process is already in place and that process already has been in place for this energy reform. there is great cooperation between the u.s. and mexican coast guard. in theas cooperation u.s. state department and u.s. coast guard. was a said -- there meeting in tampa where mexican officials and u.s. coast guard officials were there. the process is in place. what i wanted to underscore and
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thatight is the say everything in this world is easy as far as the agreement and paperwork is concerned. -- implementation is a very difficult challenge. in this new concept -- we are able to work hand-in-hand with pemex. that will bring in transfer a lot of knowledge on how to manage the business. i think that is an area where we will see quite a bit of improvement. be in pipeline transportation. we have seen a number of accident in mexico and also onshore field work. the public security. -- onshore in particular. it is a question i get asked a lot.
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my standard response is look at where the oil industry operates globally. the don't always operate in safest places. they know a deal with security threats. the one potential exception i would say is that smaller operators that might benefit from a boom in the shale business in northern mexico. that is where we really had keep focused on the question of rule of law in mexico where we have to keep focused on trying to lower levels of violence across the country. particular, lowering the cost of business because although it has not been a significant disincentive for investment in mexico, it does raise the cost of doing business when you have to face threats of vix -- of kidnapping and extortion. for the smaller companies, that is something they need to factor in.
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>> good morning. let me come back to the electricity sector. do you see a role for the world public branch of the idb andank or the the i opening up the sector to private participation? >> not that i am aware of. the transformation in the reform is that we will allow something that happened since mexico amended the secondary legislation in 1995 -- 1992. it allow the participation of private sectors generation for consumption of its own and to sell it to nearby businesses. that model has been put into question because it was not a constitutional amendment. there are been several intense
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to amend -- attempts to amend the constitution. now is are doing establishing something that is already there. a third of mexico's power production is done by the private sector but now what we are achieving with this reform is not only that they have a constitutional base to do so but they will also promote a market so that we can have the lowest costs producers to be stitch of it at first -- to be distributed first. that will be the standard because if we have a strong supply of natural gas in the country doubled reese the cost of production of electricity. we have an independent body that will submit the electricity to the distribution lines according to lower costs. that will transfer these benefits to the overall population. there is a task ahead to get
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subsidies system right in order to decrease externalities that you have. this is part of a whole plan of implementation that will allow lower cost of production of electricity to reach the bill of mexicans. >> if there was one area -- how about public branding and retail? all of the service stations in mexico are now -- are not owned by 1pemex. they are owned by private operators. in the legislation or secondary legislation, looking at the availability of private branding. that is number one. is the operator of that private band -- brand to be able to import its own gasoline so that therefore the deficit of
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refining can be met by a new operator -- is that model for downstream marketing of retail fuels somewhere in the reform? course -- of course. we already import 50% of the ghastly but there is no benefit for the consumer. we are looking at the secondary legislation to open up branding and open up the service. the privates that sector will import gasoline, that is what we are doing. we are importing 50% of the gasoline. we can increase the production capacity inside of the country. you are mentioning that you could see having a joint venture in the u.s.. the irony is that we have that already. pemex has a refinery in texas. it is a joint venture which
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shell. if pemex would want to bring shell to mexico and do what it is doing in texas until the reform -- and they were for bid and to do so -- they were forbidden to do so. you for binger will company to do it in your country -- forbid your company to do it in your country. pemex will be allowed to do those joint ventures in mexico. we are looking for important change in the industry. we now have the legal structure that will allow those things to happen. there is always an opportunity for the international financial institutions to provide private financing. pemex isns out now, xm's number one customer.
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i think for the ifc and others, having that participation will give comfort to some private investors. it is something for the shareholders of the bank to encourage. >> i have a question from those watching from the web. the question is what does this mean for broader u.s. and mexico relations? immigration, commerce, security operations. >> is a question i get quite a lot. what i think has been fascinating and incredibly well handled by the u.s. government years is how 20 the u.s. government has respected mexico's sovereign right to determine its own energy future. of the world that has been played by the u.s. government -- a foreign service officer said this really the
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result of great pressure of the united states to make the reform happen? baby can -- they began to come up with this conspiracy. the united states government has been incredibly respectful in terms of allowing mexico to determine its own future. this is a result of a national debate in mexico and a long process. the implications of it are very positive. partly because of increased business integration but mostly which is increased integration of energy markets. the u.s. is seeing increased integration of the production system in north america. what we are looking for in the future is that all of the three countries in north america depend upon each other to really enhance the competitiveness. that is what this really opened up the possibility for peer it is lowering energy costs in
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mexico, guaranteeing stability of supply, making sure we can stay in mexico because energy costs are lower. areas, you mentioned immigration, security for example. these are areas where i see there will be a very positive net benefit for the mexican people and the economy. seeing zero net migration from mexico to the united states. that is probably a result of demographics and a tougher climate here in the united states. economiclt of greater opportunities. some of the estimates may prove to be right -- 100,000 new jobs in the energy sector. that is something we should celebrate because that means more 16-year-old mexican see that their future is in country as opposed to leaving. on the point of security, if you in a young man who lives marginalized area and you have
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no economic opportunities, there is very little choices for you. are you going to migrate or go into a potentially organized crime? this offers you another way out. it needs to be added to all of the changes that are happening in education and other changes in the economy that i see as seeing -- i see it as being a very positive thing. >> particularly in the borders. >> yeah. another, let me ask you question from those watching on the web. first, the bilateral relations. cast this reform within the tpp which has been negotiated and some of the free trade discussions. -- the moreor the mexico grows as an exporter, it market, more domestic the more value there is in tpp.
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to exporte ability gas given the indoors amount of gas we have and the potential to export and the relatively low prices -- and that gives us a a sickly something -- a bargaining chip to use on those trade negotiations which we did not have before. it is indefensible for us. mexico would be a collateral by -- beneficiary of that. i am not so sure that it is a big deal for mexico in those trade agreements as it is for us. >> did you want to add a mexican view to the bilateral relation? >> i agree that the first objective of this sort is to have enough oil, natural gas, gas alone produced in mexico for our own market.
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i think you are right. exporteruld not be an in the near future. the first task is to reduce the 30% of imports we have on natural gas and that will boost a new industrialization of our country into lower the prices of electricity. in the long run, if these reforms are made, these have impact in the short term but mostly in the long-term. i think we will see a different scenario in 10 years regarding that. in order for those benefits to come into place, you have to start now. one of the very important things is that we have done a big step appeared we will follow -- big step. we have our eyes looking into the future. >> we have to look at what is going on in next go from the perspective of america. this is a regional revolution
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that is going to take place. if you look at the keystone pipeline, between the keystone pipeline and all of the westa-east pipeline that will be opened up, the refinery system will have the flexibility and capacity of at least three barrels a day of capacity. what is the going to displace? if it is not going to this place that crude oil, i can certainly find a refinery in the gulf coast. exporteria that it will be different. them.me thing with i think what we are talking about is that this mexican
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energy reform is really going to open a whole new strategic view of the regional energy that we have not seen before. we can certainly take advantage. i think politically and economically you guys to get your head together, certainly from an energy point of view we can become empowered to be. -- a power to be. there was a headline about this but i thinkution regional integration in north america is very important for all of the economies. >> after mexico meet its domestic demand, it will be interesting for the hemisphere. i think most of u.s. products are going to the hemisphere but central america needs gas. if you are seeing how wide the
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formations are next go, when you meet the demand you concede 20 years out that mexico could be a supplier to central america. a lot of the problems we have with your -- with fuel, oil dependency in the caribbean and central america could be resolved by cooperation between mexico and central america. it has not been a source close enough for that territory to get gas. colombia has talked about it but i think 15 years out we are talking about not only north america but also hemispheric energy immigration. mexicans can play a very important role in that. >> we could go one for a number of hours but i am going cap the -- i am going to have to draw to a close. an announcement -- for those members of the press would like to interview the other secretary
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and our other guests we can meet in the back of this conference room. an expression of thanks for all of you for participating. it has been an amazing thing to watch in mexico, not only from a point of view from the technical ability to pass this reform but the prowess in which you did it. past 12 months in mexico, there has been in education reform, a , iecommunications reform political reform, and now culminating a year and a couple presidentto the first with the energy reform. i think you could provide washington with a harvard case study about how to get things done. happy holidays to everybody. thank you for joining us. [applause]
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>> there was no school because most of the teachers were in -- weren't concentrated -- weren't incarcerated in concentration camps. they were taken into custody.
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-- try totry to hide hide in the attic and a day or two later they came again and said we have orders to bring in the party. eb does not give himself up, we have to take you in. my father always said he wanted to stay because he had a store and he was doing fine and he was taking good care of his family. he did not have his store anymore. he found a lady, i french lady -- a french lady he was making it her business after kristal lnacht to take children across the border into france. she did it for money, not the goodness of her heart. >> survivors of the night of broken glass.
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not seize burned the synagogues across germany and austria in november 1938. eastern.ay, at 7 p.m. >> c-span, we bring public affair of vents -- events directly to you putting you in the rooms of hearings and conferences and offering complete gavel-to-gavel coverage of the u.s. house as a public service. we are c-span, created by the cable tv industry and funded by your local cable or silent provider. you can watch is in hd now. president calls on congress to extend unemployment insurance immediately. the republican response -- we will hear congress been aaron schock is gusty health care law and its effect on young people. >> hi, everybody.
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this week congress finished up some important work before heading home for the holidays. for the first time in years, both parties came together to cover my the budget. economichelps trot art course for the next two years. theill unwind some of damaging cuts that threatens students and seniors and held back our businesses. it will strengthen our middle class like education and research. it will keep producing a deficits. yearsime we have seen for of vast reduction since the end of world war ii. members of congress also voted to finally allow several dedicated public service -- it's a -- servants to do their jobs for the american people. these are judges, cabinet secretaries, and military leaders. they are men and women charged with growing our economy and making sure our housing system
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and financial system work for ordinary americans. andr a year of showdowns instructions that only held back our economy, we have been able to break the logjam a bit over the last few weeks. it is a sign we could end the cycle of shortsighted decision-making and work together to get things done. that is important because there is plenty of work to do. right now because congress failed to act before leaving on vacation, more than one million americans are poised to lose a vital source of income just a few days after christmas. stillny people who are looking for, unemployment insurance is a lifeline that could make the difference between temporary hardship or lasting catastrophe. instead of punishing these families who can least afford it now, congress should first restore that lifeline immediately and then put our entire focus on creating more good jobs that pay good wages. that is what i will be focused
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on next year and every day i have the privilege of being your president. growing the economy, building an america that offers everyone who works hard the chance to get ahead and every child a fair shot at success. act --ress congeries to continues to act in cooperation, we can make much more progress together in the years to come. thanks and have a great weekend and a very merry christmas. >> good morning. on campuses like this young people are beginning to make choices that will shape the future. right now even in the middle of finals week, they're being told to make the future better, they should rush out and get covered under the president health care law. not only that, they're being told to spread the word about what a big deal it is. the state of illinois is spending $1 million just this week on television advertising
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to try and sell be health care law. -- be health care law -- the health care law. no matter how many actors and rappers and rock stars the president rolls out, the best sales pitch in the world cannot sell a bad product. this health care law is a bad product for young people. how bad? typically based on health and age, it costs about six times more to ensure a 64-year-old and it does an 18-year-old. the health care law says that insurance companies can only charge the most extent of customers three times what they do their cheapest customers. they are forced by law to shift the cost of older and sicker patients onto young people. the president need a lot of young people -- about 2.7 million to enroll so that he can ship -- to shift the cost onto them. in washington, they call this community rating. where i come from, we call it a
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ripoff. according to one independent estimate for a healthy non-smoking male, the cheapest health insurance plan will be on average to what it 60% more expensive. that is two and a half times more than a young person should be paying. the obama administration held a conference -- held a contest encouraging people to him up with the video to help sell the law. the winning entry was a song with lyrics that included the line "don't worry about the price tag. " it is tough not to worry about it when you are racking up tens of thousands of dollars in student loans, doing work-study to get by, and trying to save for your first apartment all at a time when youth unemployment is nearly 16%. young people help with the president in office and with this health care law he is
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pushing them into years of less choice, fewer opportunities, and larger bills. this is not how it was supposed to be and everywhere i go people come up and say you should do something to stop this law. they are right. we have to scrap it and start over with an approach that focuses on the were costs, more choice, and more freedom and competition. we should make it that young people pay their gas paid their fair share for health care and nothing more. instead of washing and telling us what the by, let's get back to letting every american choose a plan that is best for them and their family. what time i am asked washington can can do -- could do to connect with millennial's, we should get government out of the way. good education can take you further than any government program. let us give young people the chance to build confidence, give them an incentive to work, and save and invest and rekindled that entrepreneurial spirit.
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the president health care law does not of this. it only sets us back and makes things more expensive. i know and you know that we can do better. thank you for listening. let me take this opportunity to wish you and your family and merry christmas and best wishes for the new year. >> on the next washington journal, there are reports that the north korean leader has as. his uncle -- has executed his uncle. it is followed by a look at president obama's national security program and legacy with david sanger. fundraising -- fund-raising and spending for the 2016 elections in the role of super packs -- and the role of super pacs. washington journal, live every morning at 7 a.m. eastern here
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on c-span. coming up next, "the communicators" looks at the future of television in the first part. that, washington is the focus -- martha washington is the focus in c-span series of first ladies. c-span, created by america's cable company in 1979 brought to you as a public service by your television provider. >> this week we focus on the future of television. we speak with julius genachowski and robert mcdowell. that is followed by a discussion with congressman greg walden. >> we are in a landscape that is absolutely shifted. there are areas of the statutory

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