Vulcan Materials Company, which has operated legally in Mexico for nearly four decades, is now at the center of a contentious legal and diplomatic struggle following actions taken by Mexican President Andrés Manuel López Obrador.
The trouble began when López Obrador, a vocal critic of Vulcan’s operations, accused the company of environmental violations and shut down their quarry on May 5, 2022, citing contract violations.
As tensions escalated, the Mexican military occupied the quarry property in March 2023, further complicating the situation.
The conflict deepened on September 23, 2024, when López Obrador declared the quarry and its surrounding areas as a Naturally Protected Area, effectively banning Vulcan from conducting any operations there.
In response, Vulcan has launched a legal challenge at the International Centre for Settlement of Investment Disputes, seeking more than $1.5 billion in compensation for the disruption to its business.
Parallel to these legal efforts, Vulcan has gained support from U.S. lawmakers who are advocating for American business interests in foreign markets.
Sens. Bill Hagerty and Tim Kaine, along with Reps. August Pfluger and Terri Sewell, have introduced the Defending American Property Abroad (DAPA) Act of 2025.
This legislation aims to amend the 1974 Trade Act to penalize foreign governments that engage in the expropriation of U.S. persons’ assets in unreasonable or discriminatory practices.
Pfluger emphasized the bipartisan nature of the bill, stating that it aims to ensure American companies are not unfairly exploited in foreign nations.
He acknowledged that their efforts to resolve the situation with the Mexican government had been largely unsuccessful so far, and he criticized the Biden administration for not providing adequate support to Vulcan.
While relations between the U.S. and Mexico have shown some improvement under the new leadership of President Claudia Sheinbaum, Pfluger indicated that there has been little progress regarding Vulcan’s situation.
Sheinbaum has largely continued the policies of her predecessor, asserting that Vulcan’s operations have breached their contract by working outside of the authorized area and negatively impacting local ecosystems, particularly cenotes and aquifers.
Earlier this year, she stated, “In that letter, they’re suggesting that there was an expropriation. There was never an expropriation — the land is theirs, the property is theirs.”
The ongoing dispute highlights the complex interplay between environmental regulation, business rights, and international diplomacy, as Vulcan fights for both its operations and substantial financial reparations.
As the situation develops, the implications for American businesses operating abroad remain a vital topic for lawmakers, who stress the necessity of protecting these interests against foreign expropriations.
The DAPA Act represents a significant step, aiming to safeguard U.S. investments from unilateral actions taken by foreign governments, as articulated by Pfluger: “We need a level playing field to ensure that other countries don’t take advantage of American businesses.”
image source from：washingtonexaminer
