Nashville Standard

In the final days of its term, the Biden administration is making efforts to finalize a trade proposal that has sparked controversy. The proposal, led by U.S. Trade Representative Katherine Tai, aims to amend the trade agreement with Canada and Mexico before January 20. Critics argue that this move could harm American interests.

The proposed changes would impact ongoing trade claims by U.S. companies against foreign governments. One notable case involves Vulcan Materials, an Alabama-based company that supplies crushed limestone for infrastructure projects in the United States. Since 2018, Vulcan has faced challenges from the Mexican government, which has sought to shut down its operations and seize its property.

Vulcan's legal battle against Mexico relies on provisions in the North American Free Trade Agreement (NAFTA) and its successor, the United States-Mexico-Canada Agreement (USMCA). However, critics claim that USTR's efforts to modify USMCA's Annex 14-C could undermine Vulcan's case.

Concerns extend beyond individual business disputes. The port operated by Vulcan on the Yucatan Peninsula is strategically significant for access to the Gulf of Mexico and southern U.S. ports. Losing control of this port could affect thousands of jobs in construction and shipping industries.

There are also geopolitical implications. China's Belt and Road Initiative has focused on acquiring ports globally for commercial and military purposes. If Mexico gains control over Vulcan's port, it raises questions about potential Chinese involvement.

Additionally, there are concerns about national security related to fentanyl production in Mexico involving Chinese companies. Critics urge Congress to pass legislation like the Defending American Property Abroad Act to protect U.S. interests.

The Biden administration faces calls to reconsider this trade proposal amid fears it could embolden foreign governments against American businesses and pose economic and security risks.