United States Senators Bill Hagerty and Tim Kaine have expressed concerns over the treatment of Vulcan Materials Company by the Mexican government. In a letter addressed to Mexican Secretary of Economy Marcelo Ebrard Casaubon, the senators outlined issues related to the alleged expropriation efforts against the U.S.-based company, which has operated in Mexico for decades, supporting jobs in both the U.S. and Mexico.
The letter states, “Vulcan Materials Company, a global leader in construction materials based in Alabama, has been operating in Mexico for over three decades…supporting thousands of jobs in Mexico and across Virginia and Tennessee.” The senators highlight the potential negative impact on investor confidence due to the Mexican government’s actions, suggesting they are a breach of the U.S.-Mexico-Canada Agreement (USMCA).
The senators urge the Mexican authorities to reconsider their actions, emphasizing the need for a resolution that respects foreign investment rights and Mexican commitments under international agreements. “We strongly urge the Mexican government to reconsider its actions against Vulcan and to work with the company toward a resolution that respects the rights of foreign investors and Mexico’s commitments under international agreements,” they wrote.
The backdrop to this situation includes Mexican President Andrés Manuel López Obrador’s (AMLO) decision in May 2022 to shut down Vulcan’s operations, citing contract violations. Since then, attempts to expropriate the company have reportedly intensified with lawsuits and law enforcement involvement. Recently, there have been efforts to designate Vulcan’s port and mine as a “Protected Natural Area.”
Senator Hagerty had previously called on President Biden to address these issues with Mexico and also engaged Secretary of State Antony Blinken regarding the situation. As the senators continue to press on the matter, they have introduced legislation proposing retaliatory measures against Western Hemisphere countries that unlawfully seize American assets.
The senators stress, “A balanced and fair approach to foreign investment will help ensure that both the U.S. and Mexico can continue to prosper.” They note Vulcan’s readiness to negotiate for a resolution, encouraging the Mexican government to cease public accusations and work towards a fair solution.
The letter represents a bipartisan effort to protect U.S. investments and maintain stability in cross-border economic relations, aiming to resolve these concerns in a manner beneficial to both countries.
