### U.S. Senators Threaten Retaliation Against Sheinbaum Over Expropriation of American Company
On September 26, 2024, two U.S. senators issued a stern warning to the new President of Mexico, Claudia Sheinbaum Pardo, threatening severe repercussions if her administration fails to reverse the expropriation of land owned by the American company Vulcan Materials, operating through its subsidiary Calica, in Quintana Roo. This action comes just days after former President Andrés Manuel López Obrador declared the “Felipe Carrillo Puerto” area, a region encompassing more than 53,000 hectares, as a Natural Protected Area (ANP). The designation affects 2,400 hectares owned by Vulcan Materials.
The ANP prohibits activities such as mining and extraction of construction materials, sparking outrage from Republican Senators Katie Britt of Alabama and John Cornyn of Texas. They called the expropriation an “unlawful seizure” of a U.S.-owned property, warning that Sheinbaum’s administration would face “crushing” consequences for failing to correct the situation.
In a public statement, the senators emphasized that this move seriously jeopardizes U.S. economic and national security interests. They also sent a letter to Esteban Moctezuma Barragán, Mexico’s Ambassador to Washington, stating that this expropriation would impact the upcoming review of the U.S.-Mexico-Canada Agreement (USMCA) in 2026.
The remarks were echoed by a group of 17 U.S. congressmen who condemned the move as a violation of trust between the two nations. They warned Sheinbaum to reconsider the declared status to avoid damaging bilateral trade relations.
Former President López Obrador defended the decision as a necessary measure to protect Mexico’s natural resources. He admitted potential legal repercussions under the USMCA but stood firm on halting the extraction of materials intended for the U.S. market.
Vulcan Materials expressed intentions to challenge the expropriation legally, declaring it a breach of North American trade agreements. The company has halted operations and plans to seek redress through available legal channels.
Simultaneously, the U.S. Secretary of State, Antony Blinken, had previously warned that such governmental confiscations are detrimental to attracting foreign investment, signifying a broader political and economic dispute moving forward.
### Secondary Article: Blinken’s Warning and Congressional Response to Mexican Expropriation
On May 21, 2024, U.S. Secretary of State Antony Blinken cautioned Mexico that the expropriation of land from Vulcan Materials would send a negative signal to international investors. Speaking at a Senate Foreign Relations Committee hearing, Blinken responded to Senator Tim Kaine’s concerns about the Mexican government’s actions against the American company.
Senator Kaine highlighted past incidents where López Obrador’s administration attempted to seize the land, including through military force. Blinken acknowledged these points, indicating the problematic nature of such government measures.
Additionally, on May 15, 2024, bipartisan congressmen proposed sanctions on vessels using ports seized from U.S. companies, specifically targeting Mexico’s efforts to expropriate Vulcan Materials’ land and maritime terminal in Quintana Roo.
In response, López Obrador remarked that Mexico would not compromise its regulations to retain foreign investments at the expense of environmental sustainability. He accused Vulcan Materials of violating ecological laws and exploiting Mexico’s resources for U.S. benefit.
Looking ahead, these developments are poised to strain U.S.-Mexico relations, with both legal battles and diplomatic negotiations anticipated as the U.S. and Mexican governments navigate this complex issue.