US Quarry Firm Claims Mexico Expropriated Caribbean Properties

An American quarry company, Vulcan Materials, has accused the Mexican government of de-facto expropriation of its properties on the Caribbean coast following a decree that declared the firm's seaport and quarries as a natural protected area. This action effectively prohibits the company's operations on its own land. The decree was issued by Mexico's Interior Department and follows President Andrés Manuel López Obrador's previous threats to expropriate the property, which he aimed to convert into a tourist attraction. Vulcan Materials has rejected a buy-out offer from the Mexican president, claiming it undervalues their assets, which they estimate at $1.9 billion for the nearly 6,000-acre property. The company argues that the decree violates the U.S.-Mexico-Canada free trade agreement and is part of a series of threats against their operations. They assert that their quarrying activities have not harmed the local environment, contrary to the president's claims. The decree's timing is notable, as it follows significant deforestation by the López Obrador administration for a tourist train project nearby. The company contends that their operations are legally permitted, unlike other quarries in the area that they allege operate unlawfully. The president has expressed interest in utilizing the company's deep port for cruise ships and transforming the flooded quarry pits into ecotourism areas, despite the presence of protected crocodile species. This situation raises concerns about the long-term implications for trade and investment relations between Mexico and the United States, as Vulcan Materials warns that such actions could have a paralyzing effect on future business engagements.