US files first trade complaint with Mexico under USMCA

The United States has filed its first labor complaint involving Mexico under the U.S.-Mexico-Canada trade agreement, after an old-guard union was caught destroying ballots at a General Motors plant in northern Mexico

MEXICO CITY -- The United States filed its first labor complaint with Mexico Wednesday under the U.S.-Mexico-Canada trade agreement, after an old-guard union was caught allegedly destroying ballots at a General Motors plant in northern Mexico. The U.S. Trade Representative invoked the “rapid response” mechanism under the trade pact, known as the USMCA. The mechanism allows a panel to determine whether Mexico is enforcing labor laws that allow workers to choose their union and vote on contracts and union leadership. If Mexico is found not to be enforcing its laws, sanctions could be invoked, including prohibiting some products from entering the United States. “Using USMCA to help protect freedom of association and collective bargaining rights in Mexico helps workers both at home and in Mexico, by stopping a race to the bottom,” said U.S. Trade Representative Katherine Tai.