(The Center Square) – A U.S.-based construction materials company, with operations supporting thousands of jobs in Virginia, is at the center of a growing trade dispute as lawmakers urge the Mexican government to reconsider actions they say undermine investor confidence and violate international agreements.
In a recent letter to Mexican Secretary of Economy Marcelo Ebrard Casaubon, Sens. Tim Kaine, D-Va., and Bill Hagerty, R-Tenn., expressed their concern over the government’s efforts to expropriate property from the company.
“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.
Vulcan Materials Company, which supplies construction aggregates used in projects across the United States, has operated in Mexico for over 30 years. The U.S. Senators said that the Mexican government’s disruption of Vulcan’s operations may violate protections established under the U.S.-Mexico-Canada Agreement.
The trade tensions follow recent efforts in Congress to address property seizures abroad. Hagerty also introduced the Defending American Property Abroad Act of 2024, which would identify property in foreign ports controlled by U.S. persons and restrict access to those ports if the property is nationalized or expropriated without due process.
The senators also emphasized that these actions “undermine efforts to strengthen these ties, as they create a perception of unpredictability toward foreign investments.”
They further warned that the Mexican government’s actions are “a critical blow to investor confidence under the U.S.-Mexico-Canada Agreement.”
The letter urges 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 highlighted the importance of a stable investment environment.
“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,” the senators wrote.
They also noted that “Vulcan remains ready and willing to negotiate… to reach an amicable solution” and encouraged them to “cease unfounded public accusations against the company as you work to resolve the issue.”
They closed the letter by expressing that they are ready to “work with you to strengthen the bonds between our countries” and their hope that the Mexican government will “take the necessary steps to address our bipartisan concerns.”
