New US House Bill Threatens Sanctions on Mexican Ports over Expropriation of Private Companies

Yesterday, members of the US House of Representatives from both parties joined forces to introduce a bill that would impose sanctions on ships using ports owned by companies from a specific country. Their aim is to prevent ships from unloading or receiving repairs in Mexico if they are subject to expropriation by the Mexican government.

The purpose of this initiative is to put pressure on President Andrés Manuel López Obrador’s administration to reconsider its plans to take control of a limestone quarry and port owned by Vulcan Materials, as reported by Bloomberg. In 2022, López Obrador mentioned potential expropriation of the Sac-Tun quarry, formerly Calica, to build a recreational park, and turning the Puerto Venado maritime terminal private for cruise ships and ferries. Last year, the Ministry of Environment and Natural Resources suggested declaring more than 2,000 hectares of Vulcan’s property a natural area.

In response to what they see as mistreatment by the Mexican government of Vulcan Materials Company, another group of US congressmen sent a letter to Mexican Foreign Minister Alicia Bárcena. They highlighted the two-year closure of the Punta Venado port by the Mexican government and condemned López Obrador’s actions as unlawful and illegitimate under both Mexican and international law. The Alabama Republican Senator, Katie Britt, expressed concern over the impact on infrastructure projects in Alabama and the Southeastern United States due to the Mexican government’s actions.

Republican Senator from Tennessee, Bill Hagerty, also criticized the actions of President López Obrador in seizing the assets of Vulcan Materials Company, which has operated in Mexico since the 1980s. Vulcan Materials is a major construction materials producer based in Birmingham, Alabama