Hagerty, Tuberville, Britt, Kaine Advocate for Vulcan in Ongoing Dispute with Mexico

May 9, 2024

This week marks two years since the Mexican government illegally shut down Vulcan port in Quintana Roo

WASHINGTON—United States Senators Bill Hagerty (R-TN), a member of the Senate Foreign Relations Committee, Tommy Tuberville (R-AL), Katie Britt (R-AL), and Tim Kaine (D-VA) today sent a letter to Secretary of Foreign Affairs of Mexico Alicia Bárcena urging her to take action regarding the Mexican government’s mistreatment of Alabama-based Vulcan Materials Company.

This week marks two years since the Mexican government illegally invaded and shut down Vulcan’s deep-water port in Quintana Roo, Mexico. Since the invasion, Mexican President Lopez Obrador has repeatedly threatened to forcibly take over Vulcan’s port and limestone quarry, forcing their operations out of Mexico, despite the company’s consistent presence in Mexico for more than 35 years. 

“I strongly condemn the actions taken by President López Obrador to illegally seize the lawful assets of Vulcan Materials Company, which has been operating in Mexico since the 1980s,” said Senator Hagerty. “President López Obrador’s actions towards this company have undermined the rule of law, diplomatic norms, and economic, trade, and investment relations within North America. This unacceptable situation has been met with a strong bipartisan rebuke in the Senate, and I urge the Biden Administration to immediately press the Mexican government to reverse course.”

“Alabama is proud to be home to the world-renowned Vulcan Materials Company,” said Senator Tuberville. “Vulcan has provided good-paying jobs to thousands of Americans since its founding more than 100 years ago. Vulcan has operated an environmentally award-winning business in Mexico for more than three decades, boosting economic growth in the region. The Mexican government’s hostility toward Vulcan is unwarranted, and jeopardizes the long-standing bilateral relationship between Mexico and the U.S. I will continue fighting for the prosperity of American businesses, and I hope this situation will be resolved quickly and fairly.”

“President López Obrador’s conduct threatening Vulcan’s lawful operations in Mexico has consistently been unacceptable and illegitimate under Mexican law and international law,” said Senator Britt. “Key infrastructure projects in Alabama and across the Southeastern United States continue to be in jeopardy because of this Mexican presidential administration’s lawlessness. I will always stand up for Alabama’s and America’s economic and security interests, and I urge the Mexican government to find a constructive path forward that will not threaten further degradation in the U.S.-Mexico bilateral relationship.”

Background:

In May 2022, Hagerty urged 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, Hagerty pressed 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, Hagerty and Kaine spoke on the Senate floor imploring 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 U.S.-Mexico-Canada Agreement (USMCA) and jeopardize a key U.S. trade relationship.

A copy of the letter can be found here and below.

Secretary Bárcena,

As you are no doubt aware, Vulcan Materials Company (Vulcan) is an Alabama-based company with a deep-water port and limestone quarry in Mexico. Through multiple interactions with the Government of Mexico (GOM) over the past two years, we have sought an explanation for the unfair treatment of Vulcan by the GOM. This week marks two years since the GOM illegally invaded and shut down the lawful operations of Vulcan in Quintana Roo, Mexico.

Since then, Vulcan has faced persistent threats and harassment from the GOM including a second military invasion and occupation of the company’s property in March of 2023, as well as a public statement from President Lopez Obrador threatening to turn the property into an environmentally protected area. These unnecessary, unwarranted, and unprecedented actions have undoubtedly harmed infrastructure developments in Mexico and the United States and threaten to undermine the long-standing bilateral relationship that our two countries currently enjoy. In fact, they have eroded the confidence this delegation has in President Lopez Obrador’s leadership in enforcing our existing free trade agreements and adhering to the rule of law.

If Vulcan’s land and port are seized, we will be forced to consider all available remedies at our disposal to ensure no entity or individual benefits from the theft of this property. Accordingly, we urge the GOM to reverse the actions taken against Vulcan and work towards a beneficial solution for all parties involved.

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