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US company accuses Mexico of expropriating its property on the Caribbean coast

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US company accuses Mexico of expropriating its property on the Caribbean coast
News

News

US company accuses Mexico of expropriating its property on the Caribbean coast

2024-09-25 10:22 Last Updated At:10:30

MEXICO CITY (AP) — An American quarry company said Tuesday the Mexican government carried out a de facto expropriation of its properties on Mexico’s Caribbean coast.

Mexico's Interior Department issued a decree late Monday declaring the firm’s seaport and quarries to be a natural protected area, in effect prohibiting the company’s activities on its own land.

President Andrés Manuel López Obrador had previously threatened to expropriate the property and later offered to buy it for about $385 million, saying at the time he wanted to turn it into a tourist attraction.

Alabama-based Vulcan Materials said in a statement Tuesday that the move violates the U.S.-Mexico-Canada free trade agreement. It said the measure formed part of “a series of threats and actions by the current administration against our operations.

“The expropriation of land and the seaport belonging to our company is another escalation and another violation of Mexico's obligations under trade agreements,” the statement said. “This illegal measure will have a long-term paralyzing effect on trade and investment relations between Mexico and the United States."

The decree published in the official gazette shows a strangely patterned nature reserve that follows exactly some of the company's property lines.

While the decree states the purpose of the park is to protect local animal and plant species, in fact the seaport and stone quarries are very disturbed areas, do not much resemble a nature reserve and would add little to that effort.

Moreover, the decree comes after López Obrador's administration cut down tens of thousands of trees in a broad swath through native jungle to build a tourist train line not far from the stone quarries.

The company, which was already involved in a dispute resolution panel complaint against the Mexican government, said Tuesday it would use “all available legal channels” to fight the new decree.

In June the American company rejected the Mexican president’s buy-out offer, saying it “substantially undervalues our assets.”

In papers filed on the case in an international arbitration panel, Vulcan Materials valued the almost 6,000-acre (2,400-hectare) property, located just south of the resort town of Playa del Carmen, at $1.9 billion.

The Mexican president has in the past threatened to expropriate the extensive property, claiming the pits the company has dug to extract crushed limestone have damaged the fragile system of underground rivers and caves in the area.

But Vulcan Materials rejected the charge at that time. “Our operations have not adversely affected underground caves, cenotes or archaeological sites. In fact, we have mapped, protected and preserved these valuable resources,” the company said in a statement.

Instead, the company alleged that some other quarries in the area have been operating unlawfully. “Unlike other quarrying sites that have been operating unlawfully to supply the Mayan Train, our operations were duly permitted,” the company said.

The Mayan Train is a pet project of López Obrador to build a tourist train around the Yucatan peninsula. Activists, cave divers and archeologist say the project has damaged the caves, which hold some of the oldest human remains in North America.

López Obrador has said in the past that the most attractive part of the property was the company’s freight shipping dock — the only deep port on the coast’s mainland — which he previously said he wanted to turn into a dock for cruise ships.

López Obrador has also said he wants to use the flooded pits that the company dug out of hundreds of acres of the limestone soil as “swimming pools” or an “ecotourism” area that would be operated as a concession by a private operator.

However, the huge quarry pits are inhabited by crocodiles, which are a protected species in Mexico.

FILE - Mexican President Andres Manuel Lopez Obrador meets with his security cabinet at the National Place in Mexico City, Aug. 2, 2024. (AP Photo/Fernando Llano, File)

FILE - Mexican President Andres Manuel Lopez Obrador meets with his security cabinet at the National Place in Mexico City, Aug. 2, 2024. (AP Photo/Fernando Llano, File)

CLEVELAND (AP) — Lane Thomas hit a two-run homer and drove in three, Josh Naylor had a pair of RBIs, and the AL Central champion Cleveland Guardians clinched a first-round bye in the postseason with a 6-1 win over the Cincinnati Reds on Tuesday night.

Tanner Bibee (12-8) allowed one run on four hits over seven innings to win for the first time at home since July 19. The right-hander struck out seven in what could be his final outing until Game 1 of the ALDS.

Cleveland earned a five-day break between the end of the regular season and the start of the division series on Oct. 5 at Progressive Field.

“Getting these days off is going to give us a lot of rejuvenation, especially for a young team,” Bibee said. “Now, we’re going to be here at home for like two weeks in a row. It’s going to be nice.”

Thomas and Kyle Manzardo both went deep against Carson Spiers (5-7) in a three-run first as the Guardians improved their AL-best home record to 49-28. They have the second-best overall mark in the AL, behind only the Yankees.

Cleveland manager Stephen Vogt said he will treat the next four games the same way as the first 158, but admitted, “We might give guys a day off.”

“We’ve said from the beginning that we think we can play with anybody –- and these guys have proved it,” the first-year skipper said. “It’s incredible, so great for them. We couldn’t be happier about this opportunity.”

The Reds made their debut under interim manager Freddie Benavides, who was promoted Sunday after David Bell was fired. Benavides’ only managerial experience was four years in the minors for Cincinnati, most recently in 2007 at Single-A Billings.

With the loss, Cincinnati was assured of finishing with a losing record for the eighth time in 10 seasons.

Spencer Steer had an RBI single in the fourth, plating Tyler Stephenson, for the Reds’ final hit. Leadoff hitter Jonathan India was struck on the helmet by a pitch in the fifth, but remained in the game for two more innings.

Hunter Gaddis and AL saves leader Emmanuel Clase retired all six batters they faced to complete the four-hitter for the Guardians.

“Bibee kept us off-balance and he kept balls off the barrel, basically,” Benavides said. “Those two guys at the end are pretty good, too. It’s a solid, solid staff they have on that side.”

Spiers gave up three runs in four innings. Ian Gibaut followed in his first major league appearance since Sept. 30, 2023, working one inning and allowing one run.

TRAINER’S ROOM

Reds: RHP Julian Aguiar (right elbow sprain), who was scheduled to start Wednesday, was placed on the injured list after being hurt during a throwing session. Aguiar did not travel to Cleveland in order to undergo an MRI.

Guardians: OF Steven Kwan (mid-back inflammation) took swings in the batting cage and Vogt said he will be activated during the homestand. The All-Star left fielder was eligible to come off the IL on Tuesday.

UP NEXT

Reds RHP Jakob Junis (4-0, 2.61 ERA) takes on Guardians LHP Joey Cantillo (2-3, 4.63 ERA) in the two-game series finale. Trade deadline acquisition Junis was scratched from starting the opener for personal reasons.

AP MLB: https://apnews.com/hub/mlb

Cleveland Guardians' Kyle Manzardo, right, runs home past Cincinnati Reds catcher Tyler Stephenson, left, to score on a sacrifice fly hit by Josh Naylor in the seventh inning of a baseball game in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cleveland Guardians' Kyle Manzardo, right, runs home past Cincinnati Reds catcher Tyler Stephenson, left, to score on a sacrifice fly hit by Josh Naylor in the seventh inning of a baseball game in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cleveland Guardians' Jose Ramirez gestures after hitting a double in the seventh inning of a baseball game against the Cincinnati Reds in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cleveland Guardians' Jose Ramirez gestures after hitting a double in the seventh inning of a baseball game against the Cincinnati Reds in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cleveland Guardians' Jose Ramirez, left, scores safely behind Cincinnati Reds catcher Tyler Stephenson, right, in the fifth inning of a baseball game in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cleveland Guardians' Jose Ramirez, left, scores safely behind Cincinnati Reds catcher Tyler Stephenson, right, in the fifth inning of a baseball game in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cincinnati Reds' Jonathan India falls after being hit with a pitch in the fifth inning of a baseball game against the Cleveland Guardians in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cincinnati Reds' Jonathan India falls after being hit with a pitch in the fifth inning of a baseball game against the Cleveland Guardians in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cleveland Guardians right fielder Will Brennan catches a fly ball hit for an out by Cincinnati Reds' Spencer Steer in the second inning of a baseball game in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cleveland Guardians right fielder Will Brennan catches a fly ball hit for an out by Cincinnati Reds' Spencer Steer in the second inning of a baseball game in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cleveland Guardians second baseman Andres Gimenez, right, forces out Cincinnati Reds' TJ Friedl, left, at second base and completes the throw for the out on Ty France for a double play in the second inning of a baseball game in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cleveland Guardians second baseman Andres Gimenez, right, forces out Cincinnati Reds' TJ Friedl, left, at second base and completes the throw for the out on Ty France for a double play in the second inning of a baseball game in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cleveland Guardians' Kyle Manzardo celebrates as he runs the bases with a home run in the first inning of a baseball game against the Cincinnati Reds in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cleveland Guardians' Kyle Manzardo celebrates as he runs the bases with a home run in the first inning of a baseball game against the Cincinnati Reds in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cincinnati Reds pitcher Carson Spiers (68) wipes his face as Cleveland Guardians' Josh Naylor, left, runs around second base on a home run ball hit by Lane Thomas in the first inning of a baseball game in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cincinnati Reds pitcher Carson Spiers (68) wipes his face as Cleveland Guardians' Josh Naylor, left, runs around second base on a home run ball hit by Lane Thomas in the first inning of a baseball game in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cleveland Guardians' Jose Ramirez, right, starts his slide into home plate as Cincinnati Reds catcher Tyler Stephenson takes the throw in the fifth inning of a baseball game in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cleveland Guardians' Jose Ramirez, right, starts his slide into home plate as Cincinnati Reds catcher Tyler Stephenson takes the throw in the fifth inning of a baseball game in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cleveland Guardians' Tanner Bibee pitches in the first inning of a baseball game against the Cincinnati Reds in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cleveland Guardians' Tanner Bibee pitches in the first inning of a baseball game against the Cincinnati Reds in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cleveland Guardians' Kyle Manzardo, right, is congratulated by teammate Jose Ramirez (11) after his home run in the first inning of a baseball game against the Cincinnati Reds in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

Cleveland Guardians' Kyle Manzardo, right, is congratulated by teammate Jose Ramirez (11) after his home run in the first inning of a baseball game against the Cincinnati Reds in Cleveland, Tuesday, Sept. 24, 2024. (AP Photo/Sue Ogrocki)

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