Diplomatic Tension Over U.S. Company’s Land Dispute in Mexico

The Battle Over Calica: AMLO, Environmentalism, and U.S. Corporate Interests

The ongoing conflict between the Mexican government and Vulcan Materials’ subsidiary, Calica, has become one of the most high-profile environmental and business disputes in recent Mexican history. The case involves competing interests: environmental preservation, U.S. corporate rights, and Mexico’s ambitious Tren Maya project.

The Roots of the Conflict

For decades, Calica (now Sac Tun) operated a limestone extraction site south of Playa del Carmen, exporting raw materials to the U.S. The site, rich in high-quality limestone, became a critical asset for Vulcan Materials, an Alabama-based company. However, the project also sparked controversy over its environmental impact, with concerns about groundwater contamination, ecosystem destruction, and damage to the surrounding Riviera Maya’s fragile karst landscape.

Under the administration of President Andrés Manuel López Obrador (AMLO), environmental issues gained significant political weight. In 2022, the Mexican government suspended Calica’s operations, citing violations of environmental regulations. AMLO argued that the company’s practices caused severe ecological damage and threatened to revoke its permits altogether.

AMLO vs. Calica: A High-Stakes Legal Battle

In response, Vulcan Materials sued the Mexican government, filing for international arbitration under the United States-Mexico-Canada Agreement (USMCA). The company alleged that Mexico unlawfully expropriated its property and violated its investment protections.

The situation escalated when Mexican armed forces and state police took control of Calica’s maritime terminal, preventing the company from exporting materials. U.S. lawmakers, particularly from Alabama, condemned the intervention as illegal and pressured the White House to take action. The issue has since created diplomatic friction between Mexico and the United States.

The Maya Train Connection

Adding another layer of complexity, Calica’s land sits adjacent to the Tren Maya, a flagship infrastructure project aimed at boosting tourism and economic growth in southeastern Mexico. The railway, which traverses Quintana Roo, Campeche, Yucatán, and Chiapas, has faced scrutiny over its own environmental impact, deforestation, and alleged ties to foreign investment, particularly from China.

Some U.S. politicians have expressed concerns that Chinese entities could be financing or influencing the Tren Maya, indirectly impacting U.S. economic interests in the region. Lawmakers have urged President Donald Trump to protect U.S. corporate rights in Mexico and prevent any encroachment by foreign powers, particularly through infrastructure projects that could shift regional influence.

AMLO’s Decree: A Final Blow?

In September 2024, AMLO issued a presidential decree designating Calica’s land as a protected natural area, effectively ending its extraction activities. The decision was framed as a victory for environmental protection, preventing further damage to the delicate cenote and aquifer systems of the Riviera Maya. However, it also deepened the legal and diplomatic dispute, as Vulcan Materials vowed to continue its legal battle.

What’s Next?

The case highlights the broader tension between Mexico’s push for environmental conservation, sovereignty over its natural resources, and the interests of multinational corporations. It also underscores the shifting dynamics of U.S.-Mexico relations, particularly as Mexico asserts greater control over foreign-owned assets.

As the legal battle unfolds, the outcome will have major implications for foreign investment in Mexico, the protection of natural resources, and the future of U.S.-Mexico trade agreements. Whether this dispute results in a diplomatic resolution or a protracted legal fight, it is certain to shape economic and environmental policy for years to come.