United States requests Mexico’s review of collective bargaining rights pursuant to USMCA

Review whether workers at a Mexican automotive components facility in Mexico are being denied the rights of free association and collective bargaining

Collective bargaining rights pursuant to USMCA

The Office of the U.S. Trade Representative (USTR) today issued a release announcing that the United States has asked Mexico to review whether workers at a Mexican automotive components facility in Mexico are being denied the rights of free association and collective bargaining.

According to the USTR release, this request is the third time this year, and the fifth time overall, that the United States has pursued action under the “rapid response mechanism” as contained in the United States-Mexico-Canada Agreement (USMCA). 

Summary

The USTR and the Interagency Labor Committee for Monitoring and Enforcement (ILC) in June 2022 received a petition that alleged that workers at an automotive components facility in Piedras Negras, Mexico, were being denied the right of free association and collective bargaining.

The ILC then determined that there was sufficient credible evidence of a denial of rights, thereby enabling the good faith invocation of enforcement mechanisms.  As a result, the USTR submitted a request to Mexico for a review as to whether workers at the Piedras Negras facility were being denied the right of free association and collective bargaining.  

Mexico has 10 days to agree to conduct a review and, if it agrees, 45 days to complete the review.   
 

For more information, contact a professional with KPMG’s Trade & Customs services:

Doug Zuvich
Partner and Global Practice Leader
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
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Andy Siciliano
Partner and National Practice Leader
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Steve Brotherton
Principal and Global Export and Sanctions Leader
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Luis (Lou) Abad
Principal, Washington National Tax
E: labad@kpmg.com

Irina Vaysfeld
Principal
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Amie Ahanchian
Principal
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Christopher Young
Principal
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Gisele Belotto
Principal
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George Zaharatos
Principal
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
E: adoornaert@kpmg.com

Jessica Libby
Principal
E: jlibby@kpmg.com

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