May 2, 2023
Biden admin concerned about Mexican military seizure of American company’s property, warns of trade impacts
The Biden administration has expressed concern over the recent seizure of an American company's property by the Mexican military. The move has raised fears of potential trade impacts between the two countries.
The American company, Constellation Brands, had been constructing a brewery in the Mexican state of Baja California. However, the Mexican military seized the property in early April, citing concerns over water usage in the area.
The Biden administration has warned that the seizure could have negative consequences for trade relations between the US and Mexico. The two countries are major trading partners, with billions of dollars in goods and services flowing between them each year.
In a statement, the US State Department said it was deeply concerned about the seizure and urged Mexico to respect the rule of law and the property rights of American companies.
The statement also noted that the seizure could have a chilling effect on foreign investment in Mexico, which could ultimately harm the country's economy.
The Mexican government has defended the seizure, arguing that it was necessary to protect the environment and ensure that local communities have access to water.
However, critics have accused the government of using the issue as a pretext to seize the property and appease local activists who oppose the brewery.
Constellation Brands has said that it is working with the Mexican government to resolve the issue and resume construction of the brewery.
The company has invested over $1 billion in the project, which was expected to create thousands of jobs and boost the local economy.
The seizure of Constellation Brands' property is just the latest in a series of disputes between the US and Mexico over trade and investment issues.
The Biden administration has vowed to strengthen economic ties with Mexico and other countries in the region, but the recent seizure could complicate those efforts.
As the two countries work to resolve the issue, it remains to be seen what impact it will have on their trade relationship and the broader economic ties between North America and the rest of the world.