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WASHINGTON, DC — As first reported in The Blaze, Congressman August Pfluger (TX-11) and Congresswoman Terri Sewell (AL-07) reintroduced critical bipartisan, bicameral legislation to protect American companies operating abroad. The Defending American Property Abroad Act would impose retaliatory prohibitions to deter and punish any nation in the Western Hemisphere that unlawfully seizes American assets.

The need for this legislation has been exemplified by the Mexican government's ongoing efforts to seize a deep-water port owned by U.S.-based Vulcan Materials Company, which is in direct violation of the United States-Mexico-Canada Agreement (USMCA) governing trade between our two nations. This violation poses a direct threat to American economic interests.

Senator Bill Hagerty (R-TN) and Senator Tim Kaine (D-VA) introduced companion legislation in the Senate.

"American companies operating abroad should not have to fear arbitrary government actions that undermine their property rights," said Rep. Pfluger. "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."

"U.S.-based companies with operations overseas should be able to conduct business without the fear of any government asserting any wrongful actions against employees or property," said Congresswoman Sewell. "The Defending Americans Abroad Act will ensure that the United States has the ability to thwart any threats to both national security and economic endeavors."

“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,” said Senator Hagerty. “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.”

“The Mexican government’s unfair targeting of Vulcan Materials Company, a U.S.-based company that employs over 1,000 people in Virginia, is harmful to the relationship between our two countries and severely undermines investor confidence,” said Senator Kaine. “That’s why I’m joining my colleagues in introducing this bipartisan legislation to deter the illegal seizure of U.S. assets.”

Key provisions of the bill include:

·     Prohibiting trade partners in the Western Hemisphere from engaging in certain activities, such as docking vessels and importing goods, if they have expropriated or otherwise seized property owned by American entities.

·     Expanding Section 301 of the Trade Act of 1974 to treat property expropriation as an unreasonable trade practice

·     Empowering the President to implement and enforce prohibitions against offending countries

·     Mandating publication of prohibited property designations in the Federal Register

The bill is co-sponsored in the House by Representatives David Rouzer (NC-07), Aaron Bean (FL-04), Dale Strong (AL-05), Julia Brownley (CA-26), Mike Collins (GA-10), Vicente Gonzalez (TX-34), John Carter (TX-31), Addison McDowell (NC-06), Salud Carbajal (CA-24), Buddy Carter (GA-01), Barry Moore (AL-01), Gary Palmer (AL-06), Robert Aderholt (AL-04), Chuck Edwards (NC-11), Craig Goldman (TX-12), Jimmy Panetta (CA-19), John McGuire (VA-05), Tim Moore (NC-14), Tim Burchett (TN-02), Morgan Luttrell (TX-08), Maria Salazar (FL-27), Thomas Kean (NJ-07), John Rutherford (FL-05), Ben Cline (VA-06), Beth Van Duyne (TX-24), Shomari Figures (AL-02), and Greg Steube (FL-17).

The bill is co-sponsored in the Senate by Senators Katie Britt (R-AL), Tommy Tuberville (R-AL), Roger Wicker (R-MS), Ted Budd (R-NC), Marsha Blackburn (R-TN), and Angela Alsobrooks (D-MD).

Read the full text of the legislation here.

Background:

In May 2022, then-Mexican President Andrés Manuel López Obrador (AMLO) abruptly shut down Vulcan Materials Company’s operations with false claims that the firm was violating its contract, and his government subsequently waged an unceasing pressure campaign against Vulcan, including multiple lawsuits and sending military and law enforcement to its facilities.

In December 2023, Rep. Pfluger led a bipartisan letter to the Mexican Ambassador demanding answers about Mexico's actions against the American company.

Earlier this year, Rep. Pfluger also led a letter commending President Trump's commitment to this issue by protecting American industries and jobs, which was first reported in The Blaze.