Vulcan Materials, a U.S. based company, has accused the Mexican government of carrying out a de facto expropriation of its properties on Mexico’s Caribbean coast. The government declared the company’s seaport and quarries to be a natural protected area, effectively prohibiting its activities on its own land. This move violates the U.S.-Mexico-Canada free trade agreement, according to Vulcan Materials. They have stated that this action will have a long-term detrimental effect on trade and investment relations between the two countries.
President Andrés Manuel López Obrador had previously threatened to expropriate the property and offered to buy it for $385 million. However, Vulcan Materials rejected the offer, valuing the property at $1.9 billion. The company claims its operations have not adversely affected underground caves or archaeological sites in the area, unlike other quarries that have been operating unlawfully to supply materials for the Mayan Train project.
Alabama’s congressional delegation has introduced legislation to hold Mexico accountable for the property seizure. Meanwhile, Vulcan Materials has vowed to utilize all available legal channels to fight the decree. The company has also raised concerns about the environmental impact of the government’s actions, including the cutting down of trees to build tourist train lines in the area. President López Obrador has expressed plans to turn the company’s seaport into a cruise ship dock and the quarry pits into an ecotourism area, despite the presence of protected crocodiles in the area.
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