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Alabama U.S. Senators Tommy Tuberville and Katie Britt and four other senators have introduced legislation in the U.S. Senate that would create penalties against Mexico if it attempts to profit from seizing Vulcan Materials Company’s property and port facility in Quintana Roo, Mexico.
The Defending American Property Abroad Act, if enacted, would prohibit vessel any from a foreign nation in the Western hemisphere from entering a U.S. port after using a port, land or infrastructure illegally seized from a U.S. entity.
The legislation would also require the Secretary of Homeland Security to identify and ban illegally seized ports from U.S. trade. It would also mandate that the U.S. Trade Representative report to Congress on how these expropriations will be handled during the upcoming review of the United States-Mexico-Canada Agreement scheduled for 2026.
Texas Congressman August Pfluger introduced similar legislation in May that all members of Alabama’s House delegation co-sponsored.
In May 2022, Vulcan’s production and port operations at the property were shut down using Mexican military force on Mexican President Andrés Manuel López Obrador’s orders. In March 2023, it seized the facility despite a court order against this action.
Mexican President Andrés Manuel López Obrador has threatened to declare the property a protected natural area or seize it by force if Vulcan doesn’t accept a $360 million offer for their gravel pits before he leaves office next year. Vulcan believes the Punta Venado deep-water port facility to be worth over $1 billion.
In a statement, Britt said the legislation would follow through on promises of serious consequences.
“We have repeatedly warned him that there will be substantial ramifications if his administration crossed this line. Our bipartisan Defending American Property Abroad Act makes it clear that we will keep our promises,” Britt said.
Tuberville said “it’s time for Congress to take action and urgently move this legislation,” before a new Mexican president takes office.
Last week, the Alabama House delegation and representatives from California, Nebraska, South Carolina and Texas signed on to a letter to the U.S. Trade Representative Ambassador Katherine Tai, echoing the same concerns.
“Mexico’s unilateral actions will undermine the great achievements we have made under the USMCA. By robbing a US company of their land rights and halting their operations, Mexico has violated the bedrock understanding of our agreement and we must examine ways to address their aggressive actions in the upcoming re-negotiation period,” the letter said.
