United States Senator Bill Hagerty (R-TN) has reintroduced the Defending American Property Abroad Act, a legislative measure aimed at deterring and punishing countries in the Western Hemisphere that unlawfully seize assets belonging to U.S. companies. The move comes in response to actions by the Mexican government regarding a deep-water port owned by Vulcan Materials Company, which U.S. lawmakers say violates the United States-Mexico-Canada Agreement (USMCA).
The bill is co-sponsored by Senators Tim Kaine (D-VA), Katie Britt (R-AL), Tommy Tuberville (R-AL), Roger Wicker (R-MS), Ted Budd (R-NC), Marsha Blackburn (R-TN), and Angela Alsobrooks (D-MD). A companion bill has also been introduced in the House of Representatives by August Pfluger (R-TX-11).
If enacted, the legislation would give authority to the Department of Homeland Security to block vessels from entering U.S. ports if they have used infrastructure or ports seized from U.S. entities by foreign governments in the region. It also grants power to the U.S. Trade Representative to investigate and respond when American companies are denied fair treatment or their assets are expropriated.
Senator Hagerty said, “I strongly condemn the Mexican government’s threats against Vulcan Materials Company and I am pleased to see this bipartisan and bicameral rebuke from the United States Senate. Under the leadership of Mexico’s previous president, Andrés Manuel López Obrador, and now the current president, Claudia Sheinbaum, the Mexican government is committing a blatant theft against a major American company and, by extension, the United States itself. No nation should be allowed to bully an American firm without consequences. Our legislation will counter any attempt by the Mexican government to profit from illegal moves to expropriate, nationalize, or otherwise seize U.S. assets.”
Representative Pfluger added: “American companies operating abroad should not have to fear arbitrary government actions that undermine their property rights. The Defending American Property Abroad Act will ensure that such actions do not go unchecked and that American businesses are protected from unjust expropriation. The protection of American property rights abroad is essential for fostering economic growth and maintaining our national security. I urge my colleagues in Congress to support this critical legislation and send a clear message that the United States will not tolerate unjust actions against American companies.”
Senator Kaine stated: “The Mexican government’s unfair targeting of Vulcan Materials Company, a U.S.-based company that employs over 1,000 people in Virginia, is harmful to the relationship between our two countries and severely undermines investor confidence. That’s why I’m joining my colleagues in introducing this bipartisan legislation to deter the illegal seizure of U.S. assets.”
Senator Britt commented: “The threats toward Vulcan’s lawfully permitted, U.S.-owned deep-water port from the Government of Mexico, even under a new president, have not ceased,” adding that Mexico’s actions violate international law and pose risks for both Alabama’s economy and national security.
Senator Tuberville remarked: “For years, the Mexican Government has shown undue aggression toward American businesses, primarily Alabama’s Vulcan Materials… The continued attempts to exploit Vulcan’s operation in the Yucatan Peninsula in Mexico is a disgrace to our longstanding trade agreement with Mexico.”
Senator Wicker said: “U.S.-owned properties in the Western Hemisphere contribute much to our economy and should not be targeted by foreign nations… This legislation would hold our allies accountable for their actions and increase protections on American-owned assets that have been expropriated.”
Senator Blackburn noted: “American-owned properties and businesses should not experience unlawful expropriation and abuse at the hands of hostile foreign governments… The Defending American Property Abroad Act would strengthen the U.S. response to the illegal seizure of American-owned properties by creating a clear set of consequences for those actions.”
According to background provided with this announcement:
– In May 2022 under President Andrés Manuel López Obrador’s administration in Mexico, operations at Vulcan Materials were halted amid allegations about contract violations; subsequent pressure included lawsuits as well as military involvement.
– In recent years Senator Hagerty called on then-President Joe Biden for action regarding these issues.
– Legislative efforts began last year after further escalation including proposals by AMLO’s administration—later continued under President Claudia Sheinbaum—to designate affected areas as protected natural zones.
– Lawmakers expressed concern over efforts within both governments which could weaken USMCA protections for U.S.-based firms.
– Communication between lawmakers like Senators Hagerty and Kaine with officials such as Mexico’s Minister of Economy Marcelo Ebrard sought resolution but reported ongoing challenges.
Further details on this legislation can be found at its official publication link.
