Last week, Secretary of State Marco Rubio traveled to Mexico to announce a new bilateral security agreement. That milestone should have signaled a stronger chapter in U.S.–Mexico relations. Yet behind the handshakes and headlines, a fundamental problem remains unresolved: Mexico cannot be trusted to honor its word when it comes to American investments.
Mexico’s government has repeatedly expropriated U.S. companies—seizing assets, canceling contracts, and weaponizing regulation to drive out fair competition. L1BRE, a Delaware-based tech firm, won a concession to modernize Mexico City’s taxi fleet. Instead of abiding by that deal, officials revoked it, confiscated the company’s equipment, and then stood up their own government-run competitor using the stolen technology. That is not business—it’s theft.
Or take Vulcan Materials, a Fortune 500 American company with deep ties to Florida. Mexico shut down its limestone quarry and seized its privately owned port, costing billions in damages and drying up a critical supply of construction materials for U.S. Gulf states. The excuses were “environmental.” The reality was pure expropriation.
This pattern of abuse is more than an economic dispute—it’s a violation of Mexico’s treaty obligations under USMCA. It comes at the worst possible time, with renegotiations set to begin in the coming weeks. Mexico cannot expect to reap the benefits of privileged market access under USMCA while it pillages American companies in broad daylight. Treaties are built on trust and reciprocity—Mexico is shredding both.
Even worse, these policies open the door for China. As American firms are driven out, Beijing’s state-backed corporations are sliding in, exploiting weak regulations and loopholes to funnel products into the U.S. duty-free. Mexico’s disregard for the rule of law isn’t just undermining American investors—it’s actively helping China tilt the playing field against us.
Congressman Brian Mast has urged Secretary Rubio to make these cases a top priority. He’s right. The United States cannot continue “business as usual” with a partner that seizes our property and breaks its promises. Mexico must provide restitution to U.S. firms, stop expropriating assets, and recommit to the rule of law—or face real consequences.
Secretary Rubio’s leadership has already secured a new security framework. Now, as negotiations begin on USMCA, he must make absolutely clear: there will be no deal if Mexico continues to cheat American investors. Access to the U.S. market is Mexico’s greatest economic privilege. It should not be unconditional.
Mexico has a choice. It can resolve these disputes amicably, restore confidence, and prove itself a reliable neighbor. Or it can double down on expropriation and lawlessness—and watch the U.S. take tougher measures to protect our companies, our workers, and our future.
