USTR Requests Labor Review of 3 Mexican Facilities
The U.S. requested three more panels under the rapid response labor mechanism in the USMCA to investigate three Mexican manufacturing facilities. The Office of the U.S. Trade Representative said that the U.S. and Mexico "were not able to agree on a plan for the full resolution of workers’ concerns at their facilities," and so USTR activated the dispute settlement panel under USMCA.
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Taking this action, “we are leveling the playing [field] for those companies that have remained invested in their workers, communities, and the U.S. economy, and beginning the work of reversing decades of trade policy that has pitted American workers against exploited workers in other countries,” USTR said in a news release Dec. 18.
Pirelli Neumaticos tire factory, Bader de Mexico leather manufacturing plant and Tecnos, a small arms ammunition factory, all filed petitions alleging that management interfered with union affairs. Mexican government officials either found there were no labor violations, or published a limited finding of denial of rights at these factories.
CBP already has suspended liquidation for goods exported from the three facilities (see 2406240059 and 2408230026). If the USMCA panel agrees with the U.S. position, the U.S. can suspend the trade deal's tariff benefits for the goods made at that factory.
The panel requests illustrate “the Biden-Harris Administration’s unwavering commitment to supporting workers and safeguarding their rights,” U.S. Trade Representative Katherine Tai said. “Every worker has the right to organize and join a union without facing retaliation or dismissal. While we remain committed to collaborating with the Government of Mexico, more must be done to protect workers’ rights to freedom of association and collective bargaining ... .”