NEW YORK CITY—Today, United States Senators Bill Hagerty (R-TN) and Tim Kaine (D-VA), members of the Senate Foreign Relations Committee, sent a letter urging Mexican Secretary of Economy Marcelo Ebrard Casaubon 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.
The Mexican government has made efforts to expropriate property from Vulcan, which would both interfere with its ability to do business and undermine the crucial economic ties between the U.S. and Mexico.
“As you know, 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 wrote. “However, recent efforts by the Mexican government to expropriate Vulcan property undermine efforts to strengthen these ties, as they create a perception of unpredictability toward foreign investments. The Mexican government’s actions against Vulcan are a critical blow to investor confidence under the U.S.-Mexico-Canada Agreement (USMCA).”
“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,” the Senators continued. “By doing so, Mexico would demonstrate its commitment to honoring the principles of respect, transparency, and legal certainty that foster a stable and welcoming environment for all businesses. We understand Vulcan remains ready and willing to negotiate with you to reach an amicable solution. In the interest of reaching such a solution, we would encourage your Government to cease unfounded public accusations against the company as you work to resolve the issue. A balanced and fair approach to foreign investment will help ensure that both the U.S. and Mexico can continue to prosper.”
Background:
In May 2022, Mexican President Andrés Manuel López Obrador (AMLO) abruptly shut down Vulcan’s operations with false claims that the firm was violating its contract, and since then the Mexican Government, under AMLO’s direction, has waged an unceasing pressure campaign against Vulcan, including multiple lawsuits and at times sending military and law enforcement to its facilities. Last month, AMLO announced that he is pushing to designate the port and mine a “Protected Natural Area”.
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 USMCA and jeopardize a key U.S. trade relationship.
In September 2024, 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, Hagerty and Kaine condemned ongoing efforts by U.S. Trade Representative (USTR) Katherine Tai to weaken protections for American companies under the U.S.-Mexico-Canada Agreement (USMCA), which makes American companies vulnerable to Mexico seizing their property and assets.
A copy of the letter can be found here and below.
Dear Secretary Ebrard Casaubon:
We are contacting your government to address the unfair treatment of Vulcan Materials Company (Vulcan) by the Government of Mexico.
The United States and Mexico enjoy a strong economic partnership and benefit from deep economic integration. U.S. companies support growth and job creation throughout Mexico. We are committed to helping maintain and build this relationship.
As you know, Vulcan Materials Company, a global leader in construction materials based in Alabama, has been operating in Mexico for over three decades. The firm has employed hundreds of people in Mexico and contributes to local economic development. Vulcan’s investment in Mexico highlights the mutual benefits of cross-border economic relations and plays a vital role in its broader business operations, supporting thousands of jobs in Mexico and across Virginia and Tennessee. However, recent efforts by the Mexican government to expropriate Vulcan property undermine efforts to strengthen these ties, as they create a perception of unpredictability toward foreign investments. The Mexican government’s actions against Vulcan are a critical blow to investor confidence under the U.S.-Mexico-Canada Agreement (USMCA).
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. By doing so, Mexico would demonstrate its commitment to honoring the principles of respect, transparency, and legal certainty that foster a stable and welcoming environment for all businesses.
We are ready to work with you to strengthen the bonds between our countries and sincerely hope that the Mexican government will take the necessary steps to address our bipartisan concerns. We understand Vulcan remains ready and willing to negotiate with you to reach an amicable solution. In the interest of reaching such a solution, we would encourage your government to cease unfounded public accusations against the company as you work to resolve the issue. A balanced and fair approach to foreign investment will help ensure that both the U.S. and Mexico can continue to prosper.
We appreciate your time and attention to this urgent matter. We look forward to hearing your thoughts on how we can work together to resolve these concerns in a mutually beneficial manner.
Sincerely,
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