On January 15, 2025, a bipartisan group of U.S. senators and House members raised concerns with U.S. Trade Representative Katherine Tai regarding ongoing 'secret negotiations' with Mexico, Canada, and Colombia. These discussions are feared to weaken investor protections within existing U.S. free trade agreements, including the USMCA.
The lawmakers specifically highlighted that these talks could undermine a USMCA provision that allows Vulcan Materials Company to pursue claims against Mexico. This dispute stems from Mexico's actions concerning Vulcan's limestone quarry and port on the Yucatan peninsula, which has been impaired by the establishment of a new nature preserve.
The potential for changes to investor-state dispute settlement (ISDS) provisions is a significant concern for American companies operating abroad. For Vulcan Materials, the outcome of these negotiations directly impacts its ability to seek redress for the expropriation of its Mexican assets, which are a key supplier to infrastructure projects in the southeastern U.S.
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