US Suspends Customs Processing of Auto Parts From Mexican Plant Over Labour Rights Concerns

The United States has suspended the finalisation of customs duties on goods from a Mexican auto-parts plant after launching a review into allegations that workers were denied the right to organise and bargain collectively.

The Office of the US Trade Representative (USTR) invoked the Rapid Response Labor Mechanism under the United States-Mexico-Canada Agreement (USMCA) to investigate alleged labour rights violations at GLM Components Mexico, located in Puebla, Mexico.

The allegations were submitted on September 8 by Morenas, an independent Mexican union, which accused the company of interfering with union activities and unlawfully dismissing workers in retaliation for their involvement in organising efforts.

Following a review of the petition, the Interagency Labor Committee for Monitoring and Enforcement determined that there was sufficient credible evidence of a denial of workers’ rights to justify invoking the agreement’s enforcement mechanism, according to the USTR.

The US has asked Mexico to investigate whether workers at the facility are being denied freedom of association and collective bargaining rights. It has also directed the Treasury Secretary to suspend the liquidation of unliquidated entries of goods from the plant.

The measure does not amount to a final finding that the company violated labour laws. It allows the two countries to review the allegations under the USMCA’s labour enforcement framework.

Mexico has 10 days to agree to conduct the review. If it accepts the request, it will have 45 days to complete the investigation.

The Rapid Response Labor Mechanism allows the US and Mexico to address alleged denials of workers’ rights at specific facilities, including through trade-related enforcement measures.

Source: FSX Business News