In violation of USMCA, Mexico’s president has repeatedly threatened to declare an American company’s property as a “Protected Natural Area” to unjustifiably seize the company’s assets
WASHINGTON—Yesterday,United States Senator Bill Hagerty (R-TN), a member of the Senate Foreign Relations Committee, led his colleagues in reintroducing the Defending American Property Abroad Act, legislation to impose retaliatory prohibitions to deter and punish any nation in the Western Hemisphere that unlawfully seizes American assets. This legislation responds to ongoing efforts by the Mexican government to seize a deep-water port owned by U.S.-based Vulcan Materials Company in flagrant violation of the United States-Mexico-Canada Agreement (USMCA) governing trade between our two nations. The legislation is co-sponsored by Senators Tim Kaine (D-VA), Katie Britt (R-AL), Tommy Tuberville (R-AL), Roger Wicker (R-MS), Ted Budd (R-NC), Marsha Blackburn (R-TN), and Angela Alsobrooks (D-MD). Representative August Pfluger (R-TX-11) has introduced companion legislation in the U.S. House of Representatives.
In specific, this legislation would authorize the Department of Homeland Security (DHS) to prohibit vessels from entering a U.S. port if they previously used a port, land, or infrastructure that had been illegally seized from a U.S. entity by a foreign nation in the Western Hemisphere. It also empowers the U.S. Trade Representative to investigate and respond to foreign governments that deny U.S. companies fair and equal treatment or that have expropriated, nationalized, or seized U.S. assets.
“I strongly condemn the Mexican government’s threats against Vulcan Materials Company and I am pleased to see this bipartisan and bicameral rebuke from the United States Senate,” said Senator Hagerty. “Under the leadership of Mexico’s previous president, Andrés Manuel López Obrador, and now the current president, Claudia Sheinbaum, the Mexican government is committing a blatant theft against a major American company and, by extension, the United States itself. No nation should be allowed to bully an American firm without consequences. Our legislation will counter any attempt by the Mexican government to profit from illegal moves to expropriate, nationalize, or otherwise seize U.S. assets.”
“American companies operating abroad should not have to fear arbitrary government actions that undermine their property rights,” said Representative Pfluger. “The Defending American Property Abroad Act will ensure that such actions do not go unchecked and that American businesses are protected from unjust expropriation. The protection of American property rights abroad is essential for fostering economic growth and maintaining our national security. I urge my colleagues in Congress to support this critical legislation and send a clear message that the United States will not tolerate unjust actions against American companies.”
“The Mexican government’s unfair targeting of Vulcan Materials Company, a U.S.-based company that employs over 1,000 people in Virginia, is harmful to the relationship between our two countries and severely undermines investor confidence,” said Senator Kaine. “That’s why I’m joining my colleagues in introducing this bipartisan legislation to deter the illegal seizure of U.S. assets.”
“The threats toward Vulcan’s lawfully permitted, U.S.-owned deep-water port from the Government of Mexico, even under a new president, have not ceased,” said Senator Britt. “Mexico continues to flagrantly violate international law with its actions, putting America’s and Alabama’s economic and national security at risk — and it won’t stand. I’m proud to fight for the rule of law and join Senator Hagerty in introducing the bipartisan Defending American Property Abroad Act of 2025. This reaffirms the U.S. will impose crushing consequences if the Government of Mexico continues to execute its illegal scheme against Vulcan’s property.”
“For years, the Mexican Government has shown undue aggression toward American businesses, primarily Alabama’s Vulcan Materials,” said Senator Tuberville. “The continued attempts to exploit Vulcan’s operation in the Yucatan Peninsula in Mexico is a disgrace to our longstanding trade agreement with Mexico. The Trump Administration has hit the ground running to prioritize and empower American companies — I look forward to seeing this bill get across the finish line to ensure American companies are fully protected.”
“U.S.-owned properties in the Western Hemisphere contribute much to our economy and should not be targeted by foreign nations,” said Senator Wicker. “This legislation would hold our allies accountable for their actions and increase protections on American-owned assets that have been expropriated.”
“American-owned properties and businesses should not experience unlawful expropriation and abuse at the hands of hostile foreign governments,” said Senator Blackburn. “The Defending American Property Abroad Act would strengthen the U.S. response to the illegal seizure of American-owned properties by creating a clear set of consequences for those actions.”
Background:
In May 2022, then-Mexican President Andrés Manuel López Obrador (AMLO) abruptly shut down Vulcan Materials Company’s operations with false claims that the firm was violating its contract and his government subsequently waged an unceasing pressure campaign against Vulcan, including multiple lawsuits and sending military and law enforcement to its facilities.
In May 2022, Senator Hagerty urged then-President Joe Biden to take action against the Mexican government’s moves to expropriate the property of U.S. companies with investments and operations in Mexico.
In March 2023, Senator Hagerty pressed then-Secretary of State Antony Blinken on the seizure by Mexican military troops and civilian authorities of U.S.-based Vulcan Materials Company’s assets in Mexico.
In December 2023, Senators Hagerty and Kaine spoke on the Senate floor imploring then-President López Obrador to halt harmful actions against American companies’ lawfully owned assets in Mexico, noting that these unlawful actions violate agreements made between the two countries under the USMCA and jeopardize a key U.S. trade relationship.
In August 2024, AMLO announced that he is pushing to designate the port and mine a “Protected Natural Area”.
In September 2024, Senators Hagerty and Kaine introduced legislation to impose retaliatory prohibitions that deter and punish any Western Hemisphere nation that unlawfully seizes American assets, responding to ongoing efforts by the Government of Mexico to seize a deep-water port owned by U.S.-based Vulcan Materials Company, which is a flagrant violation of the United Sates-Mexico-Canada Agreement (USMCA) governing trade between our two nations.
In December 2024, Senators Hagerty and other lawmakers condemned ongoing efforts by then-U.S. Trade Representative (USTR) Katherine Tai to weaken protections for American companies under the U.S.-Mexico-Canada Agreement (USMCA), a counterproductive move that would make American companies vulnerable to Mexico seizing their property and assets.
In April 2025, Senators Hagerty and Kaine sent a letter to Mexican Minister of Economy Ebrard Casaubon urging him to address the country’s unfair treatment of the U.S.-based Vulcan Materials Company, which has operated in Mexico for decades and supports thousands of jobs in both countries.
Full text of the Defending American Property Abroad Act can be found here.
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