US Suspends Import Processing in Probe of Mexican Factory

The United States has suspended the processing of certain imports from a Mexican textile factory as it investigates allegations that the company violated workers’ rights to organise and bargain collectively.

The Office of the US Trade Representative (USTR) invoked the Rapid Response Labour Mechanism under the United States-Mexico-Canada Agreement (USMCA) to seek a review of Carolina Performance Fabrics, S.A. de C.V., a manufacturer of specialised textiles for the automotive industry in Guanajuato, Mexico.

The measure suspends liquidation of unliquidated entries of goods from the facility, delaying the final calculation of customs duties on affected imports while the case proceeds.

The action follows a petition submitted on September 10, 2026, by a Mexican union affiliated with the Confederación Central Nacional (COCENA). The petition alleges that Carolina interfered with union activities and retaliated against workers seeking to organise, including through harassment, threats and unlawful dismissals.

After reviewing the petition and supporting information, the US Interagency Labour Committee for Monitoring and Enforcement found sufficient credible evidence of a possible denial of labour rights to justify requesting a review under the USMCA, the USTR said.

Washington has formally asked Mexico to investigate whether workers at the plant are being denied freedom of association and collective bargaining rights under the agreement.

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

The Rapid Response Labour Mechanism enables the US and Mexico to address alleged labour rights violations at specific facilities. The USTR announcement did not disclose the value or volume of imports affected by the suspension.

Source: FSX Business News