U.S. Senator Ted Budd (R-N.C.) has joined with Senator Bill Hagerty (R-Tenn.) and other Senate Republicans to reintroduce the Defending American Property Abroad Act. The legislation aims to deter and punish nations in the Western Hemisphere that unlawfully seize assets owned by Americans.
The bill was prompted by actions from the Mexican government, which is accused of attempting to take control of a deep-water port operated by Vulcan Materials Company, a U.S.-based business. Lawmakers say this move violates the United States-Mexico-Canada Agreement (USMCA), an accord that regulates trade between the two countries.
“The illegal seizure of American-owned property is a blatant violation of international law, and the Government of Mexico has knowingly crossed that line. The Defending American Property Abroad Act creates consequences for Mexico’s reckless actions. It’s time to implement firm protections to ensure American companies operating abroad are no longer exploited or undermined by foreign governments,” said Senator Budd.
Senator Hagerty added: “I strongly condemn the Mexican government’s threats against Vulcan Materials Company and I am pleased to see this bipartisan and bicameral rebuke from the United States Senate. Under the leadership of Mexico’s previous president, Andrés Manuel López Obrador, and now the current president, Claudia Sheinbaum, the Mexican government is committing a blatant theft against a major American company and, by extension, the United States itself. No nation should be allowed to bully an American firm without consequences. Our legislation will counter any attempt by the Mexican government to profit from illegal moves to expropriate, nationalize, or otherwise seize U.S. assets.”
Representative August Pfluger (R-Texas-11), who introduced similar legislation in the House of Representatives, stated: “American companies operating abroad should not have to fear arbitrary government actions that undermine their property rights. The Defending American Property Abroad Act will ensure that such actions do not go unchecked and that American businesses are protected from unjust expropriation. The protection of American property rights abroad is essential for fostering economic growth and maintaining our national security. I urge my colleagues in Congress to support this critical legislation and send a clear message that the United States will not tolerate unjust actions against American companies.”
The measure also received co-sponsorship from Senators Tim Kaine (D-Va.), Katie Britt (R-Ala.), Tommy Tuberville (R-Ala.), Roger Wicker (R-Miss.), Marsha Blackburn (R-Tenn.), and Angela Alsobrooks (D-Md.).
Earlier this year, Senator Budd questioned U.S. Secretary of Commerce Howard Lutnick about reports involving an incursion by Mexican forces at Vulcan Materials’ facility in 2022—a situation which reportedly stopped shipments of building materials into the U.S.
Senator Budd described these events as “egregious” acts harming bilateral trade relations with Mexico during both current President Claudia Sheinbaum’s term as well as former President Andrés Manuel López Obrador’s administration.
Secretary Lutnick responded: “I will stand up for American companies whenever improper actions are taken against them by foreign governments.”
