Senator Bill Hagerty has voiced strong opposition against the Biden administration’s handling of an international property dispute involving a major U.S. company in Mexico.
The Washington Examiner reported that Vulcan Materials Co., a leading U.S. producer of construction aggregates like sand and gravel, operates a significant deepwater port in Mexico.
The company had been in Mexico for over 30 years before facing a sudden seizure of its property by the Mexican government in 2022, citing conservation reasons.
Following the seizure, the ongoing renegotiation of the U.S.-Mexico-Canada trade agreement raised concerns.
Senator Hagerty suggests that these negotiations might culminate in allowing Mexico to declare the port a nature reserve, permanently transferring ownership away from Vulcan Materials.
Senator Hagerty is addressing this issue by advocating for the company's rights through legislative means, having introduced the Defending American Property Abroad Act last year. This act aims to protect U.S. properties abroad from foreign governmental seizures similar to the one experienced by Vulcan Materials.
The implications of the seizure are substantial, not only for Vulcan Materials but for the U.S. economic interests according to Hagerty. He argues that the Mexican government's unilateral action to take over a strategic asset underlines a troubling precedent.
"What Mexico has done is stepped in and stolen this property, it’s expropriated it. And what the Biden administration is doing here in the 11th hour is trying to hand this over to Mexico," Hagerty stated, expressing severe criticisms of both Mexican and U.S. actions in this matter.
Additionally, Hagerty emphasized the strategic importance of the port, hinting at potential global implications: "It’s amazing that they would let the Mexican government come in and expropriate a strategic deepwater port that I’m certain if Mexico’s able to get this for nothing, it will become for sale to the highest bidder. It could be a crown jewel in China’s Belt and Road."
Senator Hagerty is not just vocalizing his concerns; he is actively working to counteract what he sees as negligence on the part of the Biden administration.
He plans to utilize the upcoming week to rally support and potentially block the property's transfer under the trade agreement renegotiations.
"I’m going to spend every moment I can this next week to try to stop them in the 11th hour so this does not happen in America," he said, highlighting his determination to challenge the current trajectory of the trade talks.
This dispute highlights an ongoing, complex challenge involving international trade relations, governmental authority, and private property rights. Hagerty's efforts suggest a significant pushback against what he views as a dangerous oversight by the administration.
The senator's proposed bill, if passed, could offer a safeguard for American firms operating in volatile political environments abroad, ensuring that assets remain protected against unforeseen governmental actions.
The bill also reflects growing concerns over the protection of international investments and the stability of trade agreements that directly affect U.S. companies operating overseas.
As these events unfold, the attention of trade analysts, policymakers, and business leaders remains fixed on how these negotiations will impact future U.S. commercial interests and diplomatic relations between the U.S. and Mexico.