[Congressional Record Volume 168, Number 81 (Thursday, May 12, 2022)]
[Senate]
[Pages S2481-S2482]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



                                 Mexico

  Mr. HAGERTY. Madam President, I am here today to discuss worrying 
developments in Mexico--one of the United States most important 
international partners and our neighbor to the south.
  The nearly 2,000-mile border that our nations share, both binds us 
together and presents a series of challenges, including illegal 
immigration, drug control, and human trafficking.
  But as we work through these difficult issues, our robust economic 
relationship has provided a firm foundation to strengthen and stabilize 
our efforts with an eye toward the future.
  The innovative U.S.-Mexico-Canada Agreement--or USMCA, as it is 
called--has deepened the connections between our two economies, such 
that Mexico is now one of our largest and most strategic trading 
partners.
  However, actions over the past year by the government of Mexican 
President Andres Manuel Lopez Obrador, better known as AMLO, have 
weakened that bond and are threatening the economic and diplomatic ties 
of our two nations.

[[Page S2482]]

  Through increasingly arbitrary and aggressive moves against companies 
based here in the United States and their lawfully owned assets in 
Mexico, the Mexican Government has abused its permitting and regulatory 
powers in ways that violate the letter and the spirit of our trade 
agreements and the special relationship that exists between our two 
countries. These decisions directly impact critical sectors of the U.S. 
economy, from agriculture to energy and mining, from transportation to 
tourism.
  These capricious actions, which are falsely labeled as ``reforms,'' 
risk substantially undermining confidence in the commercial rule of law 
in Mexico, and these actions also risk jeopardizing the essential 
economic relations in North America.
  Further, these actions likely violate our trade agreements by 
abrogating contracts, stripping investors of value, and eliminating 
private competition and oversight, thereby sending a clear message to 
U.S. capital markets that Mexico is no longer safe nor profitable for 
investing.
  Earlier this month, AMLO even threatened to jail political opponents 
and investors who stand in his way, desperately attempting to impose a 
state-centered, anti-free-market agenda. If not quickly corrected, 
these actions risk choking off the economic relationship between our 
two nations.
  Many important supply chains stretch across the U.S.-Mexico border, 
supporting millions of good jobs and making both countries more 
attractive for capital investment. This is certainly true for my home 
State of Tennessee. Because of that success, I have advocated for 
further expanding the integrated North American supply chain for 
critical industries as a better and more stable alternative to 
manufacturing and exporting from communist China.
  Utilizing the successes of the USMCA as the backbone for a renewed 
vision of North American competitiveness would benefit both American 
and Mexican prosperity, as well as both of our nations' national 
security. It would also better align the economic strategies and 
national interests of our two countries.
  But without a basic respect for private property and the rule of law, 
that mutually beneficial progress will not happen. In fact, failing to 
protect private property and the rule of law will inevitably lead to 
the disintegration of economic ties.
  Therefore, I urge President Lopez Obrador to reverse course before 
more damage is done. Instead, we should be looking for opportunities to 
work together to attract investment and unlock economic opportunity 
that is presented by the global rebalancing of supply chains away from 
communist China. Let's seize the opportunity together rather than 
damage our shared interests for short-term political gains.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from South Carolina.
  Mr. GRAHAM. Madam President, I ask unanimous consent to enter into a 
colloquy with my colleagues Senator Whitehouse and Senator Blumenthal.
  The PRESIDING OFFICER. Without objection, it is so ordered.