Regional trade agreement dispute settlement

This subsite collects information on disputes brought under regional trade agreements (RTAs). It follows up on the chapter on RTA dispute settlement in Trade Agreement Policies for Development: A Handbook (JP Chauffour & JC Maur, eds., World Bank 2011). See also a May 2018 think piece by me on Designing Common but Differentiated Rules for Regional Trade Disputes and blogpost on Practical ideas for aiding regional dispute settlement now, for the RTA Exchange Project on Global Economic Governance.

Pages listed below cover major RTA dispute settlement fora, and known RTA disputes, with links to panel decisions and information on outcomes when available. Coverage of African regional trade courts and disputes is missing and will be upgraded soon. If you have any corrections or additions, please email me at info (at) porgeslaw.com or send me a comment via the Contact page on this website.

For periodic updates on changes in this subsite, please sign up via the Contact page on this website.  

INDEX

2017-2022 NEWS ARCHIVE: CLICK HERE

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NEWSFEED of RTA dispute settlement news since January 2023

Last edited March 6, 2024

2024

  • March 6, 2024: At a Brookings Institution event on the 2026 review of USMCA, USTR Tai stated that the USMCA must take into account the outcome of disputes brought under USMCA, mentioning the dispute on dairy market access and the dispute on automotive rules of origin. Discussions on trade in automotive goods will need to take into account changes resulting from pandemic-era supply chain issues; challenges posed by climate change and the green transition; and the challenge of Chinese EV production. Regarding dairy, Tai stated that dispute settlement had failed to deliver the increased market access promised to US dairy producers in USMCA.

  • February 28-29: Panel in USMCA Rapid Response Mechanism dispute concerning San Martín Mine held a two-day hearing in Mexico City.

  • February 26: On-site verification held at San Martín Mine in Zacatecas, by panel in US-Mexico dispute regarding Rapid Response Mechanism application to labor dispute there.

  • February 22: Letter to Mexican Section of USMCA Secretariat from counsel for San Martín Mine stated that the company has never been informed of the complete allegations against it, the panel has not responded to the company’s request to participate and present views in the hearing, and the panel gave it no notice of the hearing dates. The letter noted that counsel routinely have access to US AD/CVD verifications. Inside US Trade reported on February 23 that the company was told informally that it will not be allowed to participate, and its legal counsel cannot attend the verification visit at the mine scheduled for February 26.

  • February 19: Sindicato Nacional de Trabajadores del Ramo de Ventas y Servicios en General, Similares y Conexos de la República Mexicana (Sinatrave), union representing employees of Tequila Patrón, reported to be filing a petition with US Labor Department seeking a Rapid Response Mechanism investigation of unjustified dismissal of 200 workers by management. Tequila Patrón has 70% share of US market for ultra-premium tequila,

  • February 16 and 20, 2024: US and Mexican governments announced successful closing of Rapid Response Mechanism investigation of Asiaway Automotive Components. Links: press releases by USTR and Ministry of Economy/Ministry of Labor and Social Welfare. Letter from USTR to US Treasury requesting resumption of liquidation of imports from the Asiaway plant.

  • February 16: USTR announced that the US had asked Mexico to review whether workers at RV Fresh Foods S.A. de C.V. guacamole plant in Uruapan, Michoacán are being denied right to freedom of association and collective bargaining. This is the first RRM request in the processed food sector. US request stemmed from January 17 petition by Mexican union Sindicato Nacional de Trabajadores y Empleados de la Industria del Comercio, Alimenticia, Textil, Automotriz, Metalúrgica, Servicios y Distribución Generalísimo José María Morelos y Pavón and union confederation Confederación Central Nacional (COCENA). Petition alleged RV Fresh Foods interfered with union activities by e.g. restricting union access to the plant and intervening union delegate election process. Links: USTR press release; USTR request to Mexican government; USTR letter directing Treasury Department to suspend liquidation of imports of guacamole from the Uruapan plant; El Economista on the January 17 petition.

  • February 15 + 19: NZ Trade Minister Todd McClay stated NZ expects Canada to comply with CPTPP panel report on dairy TRQs; Canada’s proposals to date do not comply; and NZ Ministry is seeking legal advice on next steps. NZ will also raise price-depressing effect of Canada’s Milk Class 4a subsidized dairy exports with Canadian government at WTO Ministerial Meeting.

  • February 13: Dairy Companies Association of NZ (DCANZ) rejected Canadian compliance attempts; estimates lost sales due to Canadian non-compliance at NZ$120 million/3 years.

  • February 13: Mexico and US jointly announced successful closure of Rapid Response Mechanism investigation of Fujikura Automotive Mexico, following January 30 announcement by Mexican government that it found insufficient evidence of denial of labor rights. Announcement on Feb. 13 by Ministry of Economy/Ministry of Labor and Social Welfare stated that after consultations between Mexico and the United States on the content of the investigation and additional actions by company and Mexican government, both governments agreed to close this case. Press release by USTR stated that “As a result of the above actions taken by the facility and the Government of Mexico to resolve the issue, the United States agrees that there is no ongoing denial of rights.” This is the first RRM case in which the US has agreed that even though it accepted an RRM petition, there was no denial of rights. USTR requested that Treasury Department resume liquidation of imports from the Fujikura plant at Piedras Negras.

  • February 6: Global Affairs Canada launched consultation on compliance with CPTPP panel report on dairy TRQs, supplying background information on TRQ regime including utilization and availability data. Due date for comments is March 7, 2024. Under CPTPP rules, Canada has a reasonable period of time to implement the Panel’s findings.  NZ and Canada have agreed that the reasonable period of time will expire on 1 May 2024.

  • February 6: USTR Katherine Tai spoke on the US-Mexico FTA dispute on GM corn at the University of Chicago: blogpost by Simon Lester.

  • February 5, 2024: US Department of Labor and USTR announced successful conclusion of the Rapid Response Mechanism remediation plan at Goodyear rubber tire plant in San Luis Potosí after 2023 Rapid Response Mechanism review. Over 1300 workers have received $4 million in back pay, reclassification of jobs resulting in wage increases, and improved benefits. Press release quoted VP of United Steelworkers Union praising the result as closing the wage gap between USW Goodyear workers in the US and their Mexican counterparts. USTR requested that Treasury Department resume liquidation of entries from this plant. Links: Full course of remediation; Spanish language translation of full course of remediation; USTR letter to Treasury Department; USW press release.

  • January 31: Second Chamber of the Supreme Court of Mexico (SCJN) granted an injunction (amparo) in favor of six companies against provisions of the 2021 Electricity Industry Law which give absolute priority to the government electricity monopoly CFE in dispatching power to the grid. Decision: Amparo en revisión 164/2023. These provisions were the subject of a US request for consultations under USMCA Chapter 31.

    • SCJN decision ruled that provisions on priority of dispatch of power to the grid are unconstitutional because they breach the constitutional principles of competence and free competition established in the 2013 constitutional revision that opened energy markets to competition. Furthermore, issuance of clean energy certificates to CFE discourages production of clean energy in violation of the principle of sustainable development. Decision also noted that while this amparo only applies to the six companies, the same result will apply for other participants in the wholesale electricity market, as disparate treatment of these companies would ignore constitutional principles established by the 2013 constitutional reform.

    • February 1: President Lopez Obrador stated that his government will challenge the SCJN decision.

    • Links: Supreme Court press release; Commentary from El Economista; Reporting from El Universal (1) on effect on the USMCA dispute on Mexico’s energy regulation (2) Morena party prepares to impeach head of Supreme Court Second Chamber because of his vote for the decision (3) Private sector urges respect for the decision.

  • January 30: Mexican Ministry of Economy/Ministry of Labor announced conclusion of investigation of labor conditions at Fujikura Automotive Mexico plant in Piedras Negras. Investigation found insufficient evidence of actions constituting violation of Mexican labor law or denial of rights to freedom of association and collective bargaining.

    • Nevertheless, to strengthen capacity of company, workers and union, Fujikura issued letter of commitment to union neutrality and guidelines for conduct by company personnel; strengthened dissemination of policy on discrimination, harassment, and equal opportunity; and trained workers on neutrality charter and conduct guidelines. Ministry of Labor trained workers on rights to freedom of association and collective bargaining in Mexico; trained company HR staff on rights to freedom of association and collective bargaining; and trained Fujikura union delegates from four plants in Coahuila on rights to freedom of association and collective bargaining. Mexican government therefore determined that in spite of lack of evidence of denial of rights to freedom of association and collective bargaining, Fujikura had shown its commitment to respect these rights.

    • US Embassy labor attaché commented that US government would need to review these results and that the review has not yet been concluded.

  • January 30: Liga Sindical Obrera Mexicana (LSOM) reported to have won union representation election at Teklas Automotive Mexico; management committed to negotiate a new contract with LSOM.

  • January 29: USMCA Panel on Mexico’s GM corn measures releases timetable for the dispute. For detailed timetable, see the Chapter 31 webpage on this site. Hearing has been scheduled for the Week of June 25, 2024, the initial report is due in September 2024 and the final report will be due in November 2024.

  • January 22: US and Mexico announced successful resolution of Rapid Response Mechanism review at Autoliv Steering Wheels Mexico facility in El Marqués, Querétaro state. USTR notified Treasury to resume liquidation of entries from that plant. Links: USTR press release; Mexican Ministry of Economy/Ministry of Labor press release. Mexican government had finalized its report on this proceeding on January 4, describing actions taken by management and the Mexican government, including: reinstatement of 3 unjustly dismissed workers with full backpay and benefits; severance for seven others who chose not to return to the plant; company neutrality statement and related guidelines; trainings on freedom of association and collective bargaining rights at the plant.

  • January 18: USTR announced request to Mexico to review whether workers at two locations of Atento Servicios, S.A. de C.V. in Pachuca, state of Hidalgo, are being denied the right to freedom of association and collective bargaining. These two locations offer call center services to BBVA Mexico, a subsidiary of BBVA Group. US request responded to December 18, 2023 petition from Sindicato de Telefonistas de la República Mexicana (STRM), alleging that Atento interfered in union activities and unjustly dismissed workers for supporting STRM and as a retaliatory measure for engaging in organizing efforts. January 30: Mexican government announced acceptance of request for review. Links: USTR request to Mexican government. (USTR did not request suspension of liquidation; telecommunications transmissions are not dutiable.) Ministry of Economy announcement of acceptance of request for review.

  • January 12, 2024: US Chamber of Commerce submitted amicus brief to the panel concerning issues in USMCA dispute concerning application of Rapid Response Mechanism to labor dispute at San Martín Mine in Zacatecas, Mexico.

  • January 9: Panel in USMCA dispute on Mexican measures on GM corn issued revised decision regarding applications from non-governmental entities for leave to file written views — after receiving further views from Canada, Mexico and US. For four applications, Panel granted leave to file written views limited to issues set out in the organization’s application. For five applications, Panel granted leave to file written views limited to issues set out in application which are issues before the Panel. For two applications, Panel did not grant leave to file written submission as the application did not explain how the submission would bring a perspective, particular knowledge or insight that is different from that of the participating Parties, and why its views would be unlikely to repeat arguments made or likely to be made by a Party. For three applications by Canadian entities, Panel did not grant leave to file views, because as a Canadian entity, the entity was not “a non-governmental entity located in the territory of a disputing party” as required by Art. 20.1 of USMCA Chapter 31 Rules of Procedure.

2023

  • December 22: US and Mexico announced successful resolution of Rapid Response Mechanism review at Tecnología Modificada subsidiary of Caterpillar Inc. in Nuevo Laredo, where workers were on strike. USTR notified Treasury Department to resume liquidation of entries from that plant. Actions by plant management and the Mexican government include: offer of reinstatement to two unlawfully dismissed workers; company issuance of written neutrality statement committing to respect freedom of association and collective bargaining rights; personnel guidelines to comply with neutrality statement and worker rights at the plant; zero-tolerance policy for violations of neutrality statement and guidelines; training for all employees currently working, on freedom of association and collective bargaining rights and responsibilities. Links: USTR press release; Ministry of Economy/Ministry of Labor press release; USTR letter to Treasury.

  • December 14: USTR announced that US has asked Mexico to review whether workers at Fujikura Automotive Mexico facility in Piedras Negras, Coahuila are being denied the right to freedom of association and collective bargaining, including through company blacklisting or otherwise retaliating against workers because of union activity at their prior employer, Manufacturas VU. This is the 13th Rapid Response Mechanism request for review in 2023. USTR has requested that Treasury Department suspend liquidation of entries of goods from the Fujikura facility, which produces automotive wire harnesses and cables with about 5,000 employees across three plants. December 14 request stems from November 13 petition by Mexican worker rights organization Comité Fronterizo de Obreros, US monitoring of effects of closure of the Manufacturas VU plant. December 22: Ministry of Economy announced acceptance of request for review. Links: USTR press release; US Labor Department press release; US request for review; USTR letter to Treasury requesting suspension of liquidation. Ministry of Economy announcement of acceptance of request for review.

  • December 15: Panel considering dispute on Mexican measures concerning GM corn issued its decision regarding 14 applications from non-governmental entities for leave to file written views. For six applications, Panel granted leave to file written views limited to issues set out in the organization’s application. For five applications, Panel granted leave to file written views limited to issues set out in application, but excluding issues that are not before the Panel. For three applications, Panel did not grant leave to file written submission as the application did not explain how the submission would bring a perspective, particular knowledge or insight that is different from that of the participating Parties, and why its views would be unlikely to repeat arguments made or likely to be made by a Party.

  • December 14: Congs. Elise Stefanik (R-NY), Mike Bost (R-IL), Jim Costa (D-CA), Michelle Fischbach (R-MN), Annie Kuster (D-NH) and Suzan DelBene (D-WA) led bipartisan letter to Secy. Vilsack and USTR Tai, expressing extreme disappointment in the recent USMCA panel report on Canada’s dairy TRQs and demanding that USTR and USDA outline next steps they plan to take to ensure fair access to Canadian export markets for U.S. dairy products. Links: press release; letter.

  • December 13: US submitted rebuttal submission in USMCA dispute concerning application of Rapid Response Mechanism to labor dispute at San Martín Mine in Zacatecas, Mexico.

  • December 12: Mexican Ministry of Economy and Ministry of Labor and Social Welfare announced successful conclusion of Rapid Response Mechanism review of Tecnología Modificada plant in Nuevo Laredo.

  • December 11: USTR announces successful resolution of Rapid Response Mechanism investigation of Industrias del Interior (INISA2000) denim garment factory in Aguascalientes, Mexico. US and Mexico agreed in July on a course of remediation to address labor violations, which was completed on November 10. On July 6, Industrias del Interior and two union entities reached an agreement facilitated by Mexican government. USTR announced that the remediation plan has been implemented and worker rights have been restored. Links: USTR press release; Labor Department press release; remediation plan (Spanish-language translation);

  • December 8: Ministry of Economy and Ministry of Labor and Social Welfare (STPS) announce successful conclusion of RRM investigation of Asiaway Automotive Components; investigation determined that actions by Asiaway may have constituted denial of right to freedom of association and collective bargaining, but Asiaway carried out remedial actions during investigation period in coordination with STPS. Asiaway published letter of neutrality and staff guidelines, provided training to all workers at plant on neutrality charter and conduct guidelines, and reinstated a worker who had been unjustifiably dismissed; STPS facilitated training for all workers at plant on rights to freedom of association and collective bargaining. Conclusion: facts complained of have been resolved within USMCA deadline; governments of Mexico and US to examine closing this case.

  • December 8: In RRM investigation of Teklas Automotive Mexico, Ministry of Economy issues joint communiqué that after concluding investigation into alleged denial of freedom of association and collective bargaining rights, and sharing results with USTR on November 9, both sides have made progress on agreeing on a plan of remediation.

  • December 7: Six Wisconsin Republican Congressmen write to USTR Tai and USDA Secretary Vilsack arguing that Nov. 24 panel decision “deprives Wisconsin dairy exporters of the market access negotiated in good faith and sets an unfortunate precedent for future enforcement of trade agreements”; letter urges them to share their plan for next steps, and strategy to address barriers to dairy trade. Links: press release; letter.

  • December 1: Ministry of Economy announces acceptance of request for RRM review concerning Autoliv Steering Wheels Mexico facility in Querétaro.

  • November 24: Canada and US release the panel decision in the 2023 US challenge to Canada’s administration of dairy TRQs under USMCA.

    • Panel report (transmitted to the parties on November 10) finds that Canada’s measures are not inconsistent with USMCA, in respect of US claims regarding (i) Canada’s treatment of certain types of TRQ applicants, (ii) Canada’s use of a market share allocation system with different criteria for different types of applicants, and (iii) Canada’s 12-month activity requirements. With respect to US claims concerning Canada’s mechanism for return and reallocation of unused allocations, Panel states it is unable to find that Canada’s measures are inconsistent with USMCA. One (dissenting) panelist finds that (as claimed by US) Canada’s measures breach USMCA by excluding ex-ante potential applicants who are active in the Canadian food or agriculture sector, and to the extent that these measures grant access only to processors, distributors, and, in some cases, further processors and exclude all other eligible applicants, such as retailers and food service operators, among others.

    • Global Affairs Canada statement applauds the panel report and affirms support for dairy supply management.

    • USTR Tai statement notes disappointment at the panel findings, and states that US continues to have serious concerns about Canada implementation of USMCA dairy market access commitments; states that US won the 2022 USMCA dispute on Canada dairy TRQ allocation measures, but Canada’s revised policies have not fixed the problem for U.S dairy farmers; US will continue to work to address this issue with Canada, and will use all available tools to enforce US trade agreements. November 27 USTR press release on “What They are Saying: USMCA Dairy Ruling” reprints statements by USTR Tai, USDA Secretary Vilsack, and strong statements by House Ways & Means Chair Jason Smith; House Agriculture Chair GT Thompson and ranking member David Scott; Cong. Elise Stefanik; and Cong. Adrian Smith against Canadian dairy import restrictions.

    • Report by CBC trade reporter Janyce McGregor recalled history of trade disputes concerning dairy supply management in Canada, and compares the obligations in CETA, USMCA and CPTPP. According to McGregor: “When the European Union obtained access to Canada's restricted cheese market in the Comprehensive Economic and Trade Agreement (CETA), it required Canada to earmark a share of the tariff-free import quota for retailers, with another portion set aside for new entrants to the Canadian market. The Americans did not negotiate this kind of language when CUSMA was signed. That allowed the permit allocation process for U.S. imports to include only domestic processors and existing distributors, not potential new competitors. Under both CUSMA and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with Pacific Rim dairy exporters like New Zealand, Canadian dairy processors effectively control what enters their market.”

  • November 22: USTR announces launch of statutory review of operation of USMCA on trade in automotive goods. Federal Register notice seeks input on automotive sector actions to comply with USMCA automotive rules of origin; enforcement of rules of origin; and whether automotive rules of origin remain effective in light of new vehicle technologies and changes in auto and auto parts manufacturing. Comments to be submitted via Regulations.gov online portal through January 17, 2024; virtual hearing will take place February 7, 2024. USTR will report to Congress by July 1, 2024. Links: November 22, 2023 FR Notice: July 1, 2022 USTR report to Congress on first review of USMCA and trade in automotive goods. 

  • November 21: USTR announces that US has asked Mexico to review whether workers at the Autoliv Steering Wheels Mexico facility in El Marqués, Quéretaro are being denied the right to freedom of association and collective bargaining. Request responded to Oct. 20, 2023 petition by Transformación Sindical labor union. Links: US request; USTR press release; US Labor Department press release with details on alleged company actions; USTR request to Treasury Department to suspend liquidation of entries from this plant.

  • November 20: Annual Report by USDA Agricultural Trade Office/Mexico City on Mexico’s regulatory environment for agricultural biotechnology.

  • October 31: US submitted reply submission in USMCA dispute concerning application of Rapid Response Mechanism to labor dispute at San Martín Mine in Zacatecas, Mexico.

  • October 7 - November 7: Pursuant to Article 20 of the Chapter 31 Rules of Procedure, various non-governmental organizations submitted requests to submit written views to the Panel on Mexico’s measures on genetically engineered corn. Organizations included (in alphabetical order) Asociación Nacional de Empresas Comercializadoras de Productores del Campo A.C. (ANEC); Biotechnology Innovation Organization; Canadian Biotechnology Action Network (CBAN); Center for Food Safety (CFS); Council of Canadians; El Poder del Consumidor A.C.; Farm Action; Friends of the Earth United States; Fundación Semillas de Vida A.C.; Global Development and Environment Institute (GDAE) at Tufts University; Institute for Agriculture & Trade Policy, Rural Coalition and Alianza Nacional de Campesinos; National Farmers Union (Canada); Proyecto de Desarrollo Rural Integral Vicente Guerrero (Grupo Vicente Guerrero, or GVG); and Proyecto sobre Organización, Desarrollo, Educación e Investigación (PODER).

  • October 28: Meeting with USTR Tai in Japan, Canada’s Minister of Export Promotion Mary Ng raised implementation of the USMCA panel decision on automotive rules of origin.

  • October 26: USTR announced that US has asked Mexico to review whether workers at Tecnología Modificada S.A. de C.V. in Nuevo Laredo (subsidiary of Caterpillar Inc.) are being denied the right to freedom of association and collective bargaining. This plant refurbishes electronic mechanical parts used in Caterpillar tractors, earth movers and other heavy equipment. Caterpillar statement: “Caterpillar upholds the principles of good faith bargaining and workers' rights. We are actively engaged with the United States and Mexican governments to ensure swift resolution and our continued compliance with country laws wherever we operate.” US request responded to Sept 25, 2023 petition by union Sindicato Nacional Independiente de Trabajadores de Industrias y Servicios “Movimiento 20/32” (SNITIS), alleging e.g. that the plant dismissed an employee in retaliation for union organizing activity. Links: US request; USTR press release; US Labor Department press release; USTR request to Treasury Department to suspend liquidation of entries from this plant; Reuters report including Caterpillar statement; El Universal. November 7: Ministry of Economy accepted request for review.

  • October 23: USTR and US Department of Labor announced US request to Mexico to review whether workers in San Luis Potosí plant of Asiaway Automotive Components are being denied the right to freedom of association and collective bargaining. Request followed September 20 petition submitted by Mexican union La Liga Sindical Obrera Mexicana (LSOM) and the International Lawyers Assisting Workers Network (ILAW Network); petition alleged that Asiaway dismissed a worker in retaliation for undertaking union organizing activity. Links: text of US request; USTR letter to Treasury Department requesting suspension of customs settlement for imports of goods made in Asiaway plant; USTR press release; Department of Labor press release.

  • October 19: Notification by the USMCA Secretariat that the panel on Mexico’s measures on genetically engineered corn was constituted on October 19. Panelists are: Christian Haeberli, Chair; Hugo Perezcano Díaz and Jean Kalicki, panel members.

  • October 18: Mexican government announces that Ministry of Labor & Social Welfare (STPS) and Ministry of Economy successfully concluded review of Mexico City-based cargo airline Mas Air, in response to August 30 request by US. During initial examination of US request, labor authorities determined that violation of Mexican labor law and denial of labor rights could exist, but during the 45-day further review, Mas Air, cooperating with STPS, carried out remediation actions including e.g. publishing and distributing a letter of neutrality and guidelines of conduct; training pilots on their rights of freedom of association and collective bargaining; and reinstatement of a pilot who had been dismissed.

  • October: Peterson Institute for International Economics publishes working paper by Chad Bown and Prof. Kathleen Claussen on The Rapid Response Labor Mechanism of the US-Mexico-Canada Agreement. From the abstract: “This paper reviews the unique political-economic moment in the United States and Mexico that prompted the creation of this tool. It describes how the RRM works and the considerable financial and human resources the two governments have brought to bear to operationalize it. The paper then reports a number of stylized facts on how governments used the RRM during its first three years, largely in the auto sector. It proposes paths of potentially fruitful political-economic research to understand the full implications of the RRM and concludes with preliminary lessons as well as a discussion of the potential for policymakers to transpose facility-specific mechanisms for labor or other issues, such as the environment, into future economic agreements.”

  • October 10: US Department of Labor Undersecretary Thea Lee and USTR Katherine Tai announce that Manufacturas VU (VU Manufacturing) has decided to close its plant in Piedras Negras, Mexico. In July 2023, LSOM union had warned that the Piedras Negras plant had begun layoffs of workers and was moving its machinery. Manufacturas VU was the target of two worker complaints, in 2022 and 2023, reviewed under USMCA Rapid Response Mechanism. From Lee statement: ““Recognizing the positive impact of the Rapid Response Mechanism for workers in just a few years, we also knew employers would not choose compliance in every instance. We note with disappointment VU’s decision to close its facility without adhering to the agreed course of remediation.” Remediation plan expired on September 30.

  • October 4: Mexican government announces that Mexico and US have agreed to conclude review of Grupo Yazaki with no invocation of a RRM dispute resolution panel. On August 18, Ministry of Labor had determined there was no evidence of denial of labor rights by Grupo Yazaki. Grupo Yazaki proactively (1) published neutrality statement on its website and at its Mexican facilities, (2) had Labor Ministry training for workers at its Planta León factory; ILO will train union personnel; (3) Mexican government will inspect León plant and post statement on labor rights during any union vote. USTR announces successful resolution of RRM labor issue at Grupo Yazaki Planta León factory, states that the situation brought to USTR’s attention via petition has been resolved and the US agrees that there is no ongoing denial of rights. USTR directs Treasury to resume customs liquidation for entries of goods from Planta León factory. Links: Reuters report.

  • September 29: US Department of Labor and International Labour Organization announced the launch of their Observation and Engagement for Rights Verification and Realization (OBSERVAR) joint initiative, with a launch event organized by the ILO and hosted by the Government of Mexico, near Silao GM truck plant. This initiative, to be located in Leon, Guanajuato, is to provide impartial observation of workplace votes and capacity-building for workers, employers and other key stakeholders on freedom of association and collective bargaining. ILO will implement the Initiative under $5 million/ 3-year cooperative agreement funded by US Labor Department.

  • September 25: USTR requests Mexico to review whether workers at Teklas Automotive plant in Aguascalientes are being denied right to freedom of association and collective bargaining. August 24, 2023 petition by La Liga Sindical Obrera Mexicana (LSOM) and the International Lawyers Attending Worker Network (ILAW Network) alleged that Teklas threatened and dismissed workers in retaliation for union organizing activity. October 5: Mexican government agrees to this review; government has 35 days from October 5 to determine whether such denials of rights have taken place. Links: USTR press release; USTR request; USTR request to Treasury Department to suspend liquidation of entries of goods from Teklas Aguascalientes plant.

  • September 20: Conference at El Colegio de Mexico examines “Derechos Laborales y el T-MEC"/ Labor Rights and the USMCA”, with perspectives on the Mexican and US sides. Links: YouTube video, speaker list, conference website; Oct. 5 report in Inside US Trade ($)

  • September 18: In a letter to the USMCA Rapid Response Labor Panel in case concerning the San Martín Mine, Mexican government consents to Panel’s September 7 request for verification, and asks for further details on how and when verification is to take place and whether the Panel will do an on-the-spot verification at the mine.

  • September 15: In interview with Bloomberg News, US Ambassador to Mexico Ken Salazar states that differences of view on whether Mexico’s energy measures violate USMCA are so substantial that they should be resolved by USMCA panel process. Links: article on Salazar interview; video of interview.

  • September 14: USMCA Rapid Response Labor Panel in case concerning San Martín Mine transmits memorandum setting out timetable for submissions in this dispute, including submissions from Mexico and US, and submissions by non-governmental entities (e.g. Mina San Martín-Grupo México, Sindicato Minero, Trabajadores coaligados). Memorandum also states that panel will schedule an in-person verification hearing in Mexico City, which will include 2 days for oral arguments from Mexico and US and questions from the panel. The hearing will be open to the public.

  • September 7: By letter to Mexican Ministry of Economy, the USMCA Rapid Response Labor Panel concerning the case of the San Martín Mine:

    • Makes a request for verification pursuant to USMCA Article 31-1.7; also in accordance with Article 31-1.7 requests “a document establishing the results of the respondent Party’s investigation and conclusions and any efforts it took as a result of the Request for Review and Remediation under Article 31-A.4.”

    • Advises that it will, following a September 12 Zoom meeting with the Parties, request additional information concerning the positions Mexico has adopted on the questions the Panel is charged with resolving; also that the Panel wishes to use this forum to discuss timing of the submission of documents, the mechanisms for the hearings and schedules as well as the form the hearings will take and the possibility of an on-site verification.

  • September 6: USMCA Rapid Response Labor Panel on case of San Martín Mine decides, based on documentation available to it as of September 5, that the petition of the United States meets the prima facie requirements of Article 31-A.6 and the petition is thereby confirmed.

  • September 6: Reuters reports that Biden administration has asked US oil and renewable energy companies to prepare affidavits documenting how Mexico’s policies (e.g. denial of permits and applications that favors state companies Pemex and CFE) disrupted their investments; if talks on energy issue continue to stall and affidavits produce evidence for a panel request, US likely to seek USMCA dispute settlement panel before end of 2023.

  • September 5: CPTPP dispute settlement panel finds that Canada’s administration of its tariff rate quota on dairy imports is inconsistent with Canada’s obligations under CPTPP. Links: Panel report; New Zealand press release; Canada press release. More information on the dispute and panel report on this site’s CPTPP page here.

  • September 4: In a Labor Day blogpost, Prof. Desiree LeClercq argues that the USMCA Labor Rapid Response Mechanism excludes protections for vulnerable workers in US trade sectors, through a footnote in USMCA’s Annex 31-A. Blogpost urges deletion of the footnote to make USMCA more equitable; also urges that Mexican government invoke RRM to protest alleged freedom of association and collective bargaining violations in US airline companies.

  • September 4: In confirmation hearing in the Mexican Senate, Foreign Minister nominee Alicia Bárcena states that in six-year review of USMCA in 2026, Mexico will seek adjustment of provisions on labor and agriculture. Bárcena says that the RRM is unilateral and should be reciprocal. Links: BN Americas

  • September 4: In a September 1 (date-stamped September 4) letter to the USMCA Rapid Response Panel considering US request regarding San Martín Mine, the Mexican government’s director-general for international economic law notes:

    • On August 30, the USMCA Secretariat communicated to the Parties that the Panel had been constituted on that date.

    • Pursuant to USMCA Article 31-A.6, the Panel has five business days after it is constituted to confirm that the petition: (a) identifies a Covered Facility, (b) identifies the respondent Party’s laws relevant to the Denial of Rights, and (c) states the basis for the complainant Party’s good faith belief that there is a Denial of Rights. A confirmation by the Panel pursuant to Article 31-A.6 is solely a prima facie analysis that does not prejudge the merits of the dispute or any jurisdictional objections that the defending Party may assert.

    • Mexico reiterates that the San Martín Mine cannot be considered to be as a Covered Facility, that the applicable law is outside the scope of the Rapid Response Mechanism, and that there is no Denial of Rights; Mexico reserves its rights to address these and other aspects in greater depth at the appropriate procedural moment.

  • August 30: USTR announces request for Mexican government to review whether pilots at Aerotransportes Mas de Carga (Mas Air), a Mexico City-based cargo transportation airline, are being denied the right to freedom of association and collective bargaining. This is the first USMCA Rapid Response Mechanism request concerning a service business. Request responds to July 21 petition from Mexican pilot union Asociación Sindical de Pilotos Aviadores de México (ASPA). Links: USTR press release; US request; Mas Air website; El Universal on the request; El Universal on ASPA reaction that investigation sets a precedent for the airline industry. USTR did not request Treasury to suspend customs clearance. September 8: Ministry of Economy announces that Mexican government has accepted US request; Ministry of Labour and Social Welfare has 35 days to conduct internal investigation to determine whether denial of rights has occurred; Mexico reiterates its commitment to effectively apply labor laws and the USMCA labor chapter, thereby guaranteeing compliance with, and protection of, collective rights of Mexican workers.

  • August 30: USMCA Chapter 31 second panel on dairy TRQ allocation releases revised timetable for panel process: panel will transmit its initial panel report to the disputing parties on October 11, 2023, will release its final report to the disputing parties on November 11, and will release its final report to the public by 15 days thereafter after redacting confidential information.

  • August 30: Panel constituted for dispute under USMCA Annex 31-A concerning the San Martín mine initiated August 22. Panelists: Gary Cwitco (non-national); Lorenzo de Jesús Roel Hernández (Mexico); Kevin P. Kolben (US).

  • August 25: Canada announces it will participate as third party in US-Mexico dispute concerning use of genetically engineered corn in tortillas and dough; states shared concerns that Mexico not complying with USMCA SPS chapter and that Mexican measures not scientifically supported. Links: Canada notice of intention to join as third party; Canadian Agri-Food Trade Alliance statement welcomes Canadian opposition to Mexican ban on transgenic corn use.

  • August 22: USTR announces that the US has escalated its request for review of denial of labor rights at the San Martín mine in Sombrerete, Zacatecas, by requesting a Rapid Response Labor Mechanism panel under Chapter 31-A of USMCA. This is the first time that any party has requested such a panel review. US panel request asserts that the mine is a “Covered Facility” under USMCA “[d]due to the significant bilateral trade between Mexico and the United States in copper and other minerals.” Panel request states US disagreement with Mexico’s determination that no denial of rights exists, alleging noncompliance with four named sections of Mexico’s Federal Labor Law. August 22 USTR press release notes that suspension of customs settlement remains in place for US imports from the San Martín mine.

    On August 22, Mexican Ministry of Economy responds that it has received the panel request, states that it will defend Mexico’s decision in cooperation with Mexican labor authorities, and notes again (i) the legal principle of non-retroactivity of treaties, and (ii) as the dispute had been handled by the competent domestic bodies, intrusion by a parallel USMCA process is unacceptable. Links: USTR press release; US panel request; Ministry of Economy statement; UNAM (Universidad Autónoma Nacional de México) Center on Environmental Geography website on the San Martín mine. Press: AP (on RRM generally and in this case); Reuters; Bloomberg/Mining.com (on Grupo Mexico and its owner); La Jornada; El Universal (on statement by Grupo Mexico denying any violation and criticizing Los Mineros and its leader Napoleón Gómez Urrutia). Next steps: under USMCA Art. 31-A.5, the Secretariat must choose a panel of three experts from the pre-established RRM panelist rosters, within three business days from receipt of the panel request: one from the US RRM list, one from Mexico’s RRM list, and one from the jointly-agreed list of non-nationals.

  • August 21: In Reuters interview, Mexican Minister of Economy Raquel Buenrostro states that Mexico will not modify its measures on white corn before the USMCA dispute settlement panel rules and reiterates proposal for health research before panel process; also states that Mexico and US are working on text of an agreement to settle their bilateral dispute on Mexican energy measures without resorting to a panel process.

  • August 18: Mexican Ministry of Economy announces that it has notified USTR that Mexico will not review an alleged denial of labor rights at auto parts company Grupo Yazaki in Guanajuato. As Mexico had informed USTR before its review request, Mexican labor authorities had conducted a verification, had resolved instances of nonconformity and had carried out a 2023 consultation on legitimization of the collective bargaining agreement at the Guanajuato plant. On this basis, labor authorities had determined that no substantial evidence exists of employer interference or denial by Yazaki of rights to freedom of association and collective bargaining. Reports: El Economista; AP (reporting that the RRM petitioner lost an election in March 2023 to the CTM union). Inside US Trade reports that USTR is reviewing Mexico’s response.

  • August 18: Mexican President Andrés Manuel Lopez Obrador, in daily press briefing, dismisses US panel request on Mexican ban on uses of GE corn, states that the ban is consistent with USMCA, and reiterates proposal for joint research on health effects of GE corn.

  • August 17: USTR announces that it has requested establishment of a dispute settlement panel under USMCA Chapter 31, to examine Mexico’s biotechnology measures concerning genetically engineered corn. Mexican Ministry of Economy announces receipt of panel request, stating that Ministry and other government agencies will defend Mexico, and show that Mexican measures are consistent with USMCA and have no trade effects. Next steps: US and Mexico must appoint panelists within 15 days (by September 1).

    Links: August 17 USTR press release and panel request; statements by USDA Secretary Vilsack; House Ways & Means chair Jason Smith (R-MO); Sen. Chuck Grassley; US Grains Council; National Corn Growers Association; Biotechnology Industry Organization; Press: Reuters; El Universal; Agri-Pulse; Progressive Farmer; Wall Street Journal ($); produce industry discussion on linkage between US corn exports and fresh fruit imports. See also March 6, 2023 USTR press release on request for technical consultations on these measures; June 3 USTR press release on request for dispute settlement consultations under USMCA Chapter 31, and July 27 blog by National Corn Growers Assn. on importance of Mexican market for US corn producers.

  • August 9: Governments of Mexico and the US announce agreement on a remediation plan for issues raised in the Rapid Response Mechanism petition regarding Industrias del Interior, SA (INISA) denim plant in Rincón de Romos, Aguascalientes. Links: Mexican government press release; El Universal; AP; Sourcing Journal.

  • August 9: El Universal reports that as part of the remediation plan at Goodyear México agreed in July, a vote on August 7-8 has replaced the former union with the Sindicato Independiente de Trabajadores de Goodyear México. Also, Goodyear must apply the Rubber Industry Contract (Contrato Ley de la Industria Hulera) as from January 19, 2024, resulting in a 30% increase in wages.

  • August 7: USTR announces request for Mexican government to review labor rights concerns at Grupo Yazaki Planta León auto components factory in Guanajuato. Links: USTR press release; USTR request; USTR request to Treasury Department to suspend liquidation of entries of goods produced at the Grupo Yazaki plant; El Universal.

  • August 1: Mexican Ministry of Economy announces that Mexican government has transmitted to US the results of its investigation of the Rapid Response Mechanism petition regarding Grupo México: (1) The US request for review relates solely to the mine in Sombrerete, Zacatecas; (2) This matter concerns a strike that dates back to 2007. After 16 years of litigation, on June 9, 2023 the Junta Federal de Conciliación y Arbitraje (JFCA) issued an award designating the Los Mineros union as contract holder, declaring Grupo México responsible, requiring payment of back wages and terminating the strike; (3) this conflict is outside the scope of the Rapid Response Mechanism as the alleged denial of rights occurred prior to entry into force of the USMCA and did not implicate legislation that complies with Annex 23-A of the USMCA; and (4) the San Martín mine is not a “Covered Facility” within the meaning of USMCA Article 31-A.15 as there is no evidence that it exports goods to the US. Links: Mexican government press release; reports by Reuters, El Economista.

  • July 31: Governments of Mexico and the US announce agreement on a remediation plan for issues raised in the Rapid Response Mechanism petition regarding Draxton automotive plant in Irapuato, Guanajuato. Links: Mexican government press release.

  • July 20: As part of Trump plan to save US auto industry, former President Trump announced that on Day One of his next administration, he will “secure the USMCA’s protections for American auto workers from globalist assault. In January of this year, international bureaucrats on the USMCA Panel—at the direction of Canada and Mexico and unopposed by Joe Biden—changed the terms of USMCA to reduce the amount of regional auto parts content in North American cars by up to 33%, directly benefiting China and other foreign producers. President Trump will communicate to Canada and Mexico that FULL compliance with the terms of the USMCA is not optional.”

  • July 19-20: Panel in USMCA second dispute concerning Canada’s allocation of dairy TRQs holds its hearing in Ottawa. (Hearing transcript is available in electronic docket for this case on Trade Agreements Secretariat website).

  • July 19: Governments of Mexico and the US announced agreement on a remediation plan for labor relations at the Goodyear tire manufacturing plant in San Luis Potosí. Links: Mexican government press release; press release by United Steelworkers welcoming resolution of this case and calling on all tire industry employers in Mexico to respect workers rights; report by El Universal.

  • July 19: El Universal reported warning by union representative that: Manufacturas VU may close its plant rather than comply with remediation plan agreed under USMCA Rapid Response Mechanism; also, that company has removed machinery from the plant, is operating with 10% of former employees, and has discharged all but 50 of the 400 who were employed at the time of where employees at the time of a vote on union representation.

  • July 6-7: Third annual meeting of the USMCA Free Trade Commission of the three trade ministers, in Mexico. Speaking with the press (Reuters), USTR Tai says that the US sees some progress on its energy dispute with Mexico, although "deep-seated" concerns persist; consultations with Mexico in the USMCA dispute on genetically engineered corn took place during the week of June 26.

  • July 6: SIEL Conversation panel discussion on RTA dispute settlement, with Thomas Lieflaender (DG Trade/EU Commission), Orlando Perez (TMI Law), Fernando Piérola (ACWL Geneva), Amy Porges, and Geraldo Vidigal (University of Amsterdam, moderator).

  • July 5: USTR briefs press on the July 6-7 annual meeting of the USMCA Free Trade Commission. On the USMCA dispute on automotive rules of origin, Reuters notes statement by USTR spokesperson that the US is working separately with Canada and Mexico to find a solution for "enhancing North American motor vehicle production and jobs."

  • July 4: In El Universal interview, leaders of Mexico’s Grupo Consultor de Mercados Agrícolas (GCMA) criticize Mexican decree banning uses of transgenic corn, as based on ideology rather than science; discuss commercial issues and predict the dispute will go to panel process.

  • June 29: Just before the third anniversary of entry into force of USMCA, Alliance for Trade Enforcement sends letter to USTR Tai calling on her team to improve enforcement of USMCA and bring Mexico into full USMCA compliance.

  • June 23: Mexico’s Ministry of Economy publishes decree in Diario Oficial imposing 50% tariff on imports of white corn. Links: AP coverage.

  • June 22: USTR and US Department of Labor issue notice with final revised procedural guidelines for submissions by the public of information on potential failures by Canada or Mexico to implement their USMCA labor obligations.

  • June 16: USTR announces US has asked Mexico to review whether workers at San Martín lead, zinc and copper mine near Sombrerete in Zacatecas are being denied rights to freedom of association and collective bargaining. Request follows May 15 petition by AFL-CIO, United Steelworkers (USW) and Sindicato Nacional de Trabajadores Mineros, Metalúrgicos, Siderúgicos y Similares de la República Mexicana (Los Mineros). San Martín mine is owned and operated by Grupo México, Mexico’s fourth largest company, world’s third largest copper producer and parent of US copper producer Asarco; Grupo México majority owner is German Larrea Mota Velasco. Petition alleges that Grupo México has resumed mine operations in spite of a strike that began in 2007, and engaged in collective bargaining with a worker coalition even though Los Mineros holds the representation right for that mine. USW praises USTR decision to accept this petition for review and states that USW stands “in solidarity with the Mexican mineworkers and their leader, Napoleón Gómez Urrutia.” June 21: Grupo México asserts that it legally resumed operations at the mine in 2018 after a majority of workers voted to go back to work and withdrew support from the striking union; Grupo México also asserts politicization of this dispute by the leader of Los Mineros, connected to a past dispute concerning the Cananea mine. Links: USTR press release; US request to Mexican government; USTR request to Treasury Department to suspend settlement of customs accounts for imports from San Martin mine. USW press release; Articles on Grupo México rebuttal (Reuters, El Economista). Background: El Economista on the union representation issue and on Los Mineros’ Aug. 22, 2022 petition; La Jornada Zacatecas on the mining strike.

  • June 14: Workers of the Silao factory of auto parts producer Fränkische Industrial Pipes México S.A. de C.V., subject of a March 11, 2023 Rapid Response Mechanism petition to the Canadian government, announce that they have been working with the company and the Canadian government, and a vote to elect a new union will be held on June 26.

  • June 12: USTR announces US has asked Mexico to review whether workers at an Industrias del Interior (INISA) denim garment plant in Aguascalientes are being denied the right to freedom of association and collective bargaining. This is the first time the USMCA Rapid Response Mechanism has been invoked outside the automotive sector. Request follows May 12 petition by Frente Auténtico del Trabajo (FAT) and a union representing workers at this plant, Sindicato de Industrias del Interior. Petition alleged that INISA is coercing workers to accept company’s proposed collective bargaining agreement revisions and is intervening in the union’s internal affairs; petition also alleged INISA is failing to bargain in good faith with union. Links: USTR press release; US request to Mexican government; USTR request to Treasury Department to suspend settlement of customs accounts for imports from INISA plant.

  • June 9: Mexican government announces it has agreed to review potential labor rights violations at Irapuato plant of auto parts producer Draxton pursuant to May 30 US request. Links: Ministry of Economy announcement; El Economista.

  • June 9: Canadian Minister of Agriculture and Agri-Food Marie-Claude Bibeau and Minister of International Trade Mary Ng announce that Canada will participate as a third party in dispute settlement consultations with Mexico on genetically engineered corn and other products, initiated by US on June 2, and state that “Canada shares the concerns of the U.S. that Mexico’s measures are not scientifically supported and have the potential to unnecessarily disrupt trade in the North American market.” Links: Canadian notice of intention to join as third party.

  • June 2: USTR announces US request for dispute settlement consultations under USMCA Chapter 31 on Mexican measures concerning genetically engineered (GE) corn and other products. US and Mexico held technical consultations March 30, 2023 on these measures; USMCA Article 9.19 provides that a party can cease technical consultations and have recourse to Chapter 31 dispute settlement after the technical consultations meeting. Measures at issue: (1) rejection of authorization applications covering corn, canola, cotton, and soybean GE events (resulting in ban on importation or sale in Mexico of products that include the rejected events); (2) February 13, 2023 Decree banning use of GE corn for nixtamalization or flour production; and (3) instruction in February 2023 Decree to Mexican authorities, to gradually substitute GE corn used for other human consumption or for animal feed. Links: USTR press release; USTR request for Chapter 31 dispute settlement consultations.

  • June 1: Mexican government announces it has agreed to review potential labor rights violations at Goodyear plant pursuant to May 22 US request. Link: Ministry of Economy announcement.

  • June 1: Ways and Means Trade Subcommittee chair Rep. Adrian Smith and 63 other members of Congress send letter to USTR Tai urging immediate enforcement of USMCA commitments to address threat to US exports from Mexico’s ban on US biotech corn.

  • May 31: USTR announces US has yet again invoked USMCA Rapid Response Mechanism and requests that Mexican government review whether workers at an Irapuato, Guanajuato plant of the auto parts producer Draxton are being denied the rights to freedom of association and collective bargaining. This request was self-initiated by the US government. Links: USTR press release; USTR request to Mexican government; USTR request to Treasury Department for suspension of liquidation (suspension of settlement of customs accounts) for imports of goods produced in that factory; Reuters.

  • May 22: USTR announces that US has again invoked the USMCA Rapid Response Mechanism and has asked Mexico to review whether workers at a facility operated by Goodyear SLP, S. de R.L. de C.V. in San Luis Potosí are being denied the rights to freedom of association and collective bargaining.

    • As confirmed by May 22 US Labor Department press release: on April 20, La Liga Sindical Obrera Mexicana (LSOM) filed a petition alleging that the Goodyear plant refused to apply a sectoral collective bargaining agreement (contrato ley) covering the rubber industry,and instead signed a company-specific collective bargaining agreement with lower benefits, with the Miguel Trujillo Lopez union affiliated with the Confederation of Mexican Workers (CTM). On April 23, Mexico’s Federal Center for Conciliation and Labor Registration (CFCRL) suspended a vote by Goodyear workers on that agreement, in light of irregularities including theft of a ballot box. In a May 8 vote verified by the CFCRL and observed by the ILO, 83% of the workers rejected the agreement, terminating the agreement with the CTM-affiliated Miguel Lopez Trujillo union, effective May 31, 2023.

    • USTR nevertheless invoked the Rapid Response Mechanism concerning this case. Mexico has 10 days (until June 1) to decide whether to conduct a review, and if it agrees, 45 days (until July 6) to conduct the review. In the meantime, US customs clearance of imports from the Goodyear plant is suspended.

    • The 2023 petition followed 2019 criticism by US Ways & Means Democratic Party members about this plant, and 2018 wildcat strike at the plant.

    • Links: US request for review; USTR press release; US Labor Department press release; USTR request for suspension of liquidation of imports from the Goodyear plant; report from FreightWaves.

  • May 22: Mexico’s Supreme Court (Suprema Corte de Justicio Nacional, SCJN) declares to be unconstitutional a November 2021 decree by President Andres Manuel Lopez Obrador designating public works projects as public interest and national security projects. SCJN decision rules against provisions that block transparency for these projects, and authorize presidential issuance of permits. Projects affected by this ruling include the Tren Maya project which is subject of a complaint under USMCA Ch. 24. Links: SCJN press release; Bloomberg; El Economista

  • May 15: Mexico’s Economy Ministry issues statement urging Texas state government to cease recently instituted inspections of cargo at Matamoros-Brownsville border crossing. Statement asserts that these inspections “to block flows of migrants” are outside state government jurisdiction, delay cargo by 8 - 27 hours causing millions in losses for Mexican and US businesses (particularly for perishable products), are incompatible with US trade obligations, and have anti-Mexican motivation disrupting Texas-Mexico relationship. Economy Ministry has initiated dialogue with USTR to solve the problem and will soon raise it in the USMCA Committee on Trade Facilitation. Links: Reuters; Twitter

  • May 15: In speech to North American Business Summit, US Chamber of Commerce CEO Suzanne Clark says that all three partners are “falling short” in complying with USMCA obligations, and urges efforts for accountability and compliance.

  • May 12: Workers of apparel producer Industrias del Interior (INISA 2000) in Aguascalientes reported to have submitted Rapid Response Mechanism petition alleging that the company has refused to negotiate an 8% wage increase and has fired workers advocating unionization. Controversy alleged to have started when INISA workers tried to switch their affiliation from the CTM to the Frente Auténtico del Trabajo (FAT, Authentic Labor Front).

  • May 12: USMCA Commission for Environmental Cooperation (CEC) receives submission under USMCA Chapter 24 from Mexico-based Unión de Colonias de la Puerta Sur, asserting that Mexico is failing to effectively enforce its environmental laws to adequately evaluate environmental impacts of a residential development in Tlajomulco de Zúñiga, near La Primavera Forest Protected Area in Jalisco, Mexico. Links: CEC press release; submission.

  • May 4: Bloomberg News reports on consultations between Canada and Mexico concerning USMCA dispute on Mexico’s energy policy which favors Mexican state-owned CFE over private renewable energy firms; in January Mexican Pres. Lopez Obrador met with 4 Canadian companies following Trudeau visit, 3 of 4 had concerns resolved, Economy Ministry is mediating with one last company. Report quotes Canadian Trade Minister Ng as saying Canada will not rule out future need for panel proceeding, prefers mutual solution if work is taking place, but will ensure investments have predictable rules. On GMO dispute, Ng said talks are in early stages. May 8: Reforma reports statement by Mexican Economy Minister Raquel Buenrostro that Canadian government will not request panel in energy dispute.

  • May 2: Mexico’s Ministry of Labor and Centro Federal Laboral (CFCRL) announce conclusion of 4-year process for legitimation of collective labor agreements, carried out by them and concluding at end of May 1, 2023. CFCR Decree published May 2 lists all already-legitimized collective labor agreements plus those in process of legitimation by July 31; May 2 decree immediately terminates all non-listed (non-legitimized) collective labor agreements and requires employers to cease collecting union dues, or providing preferential treatment, for any union whose collective agreement was terminated.

  • April 24: Labor Ministry and Economy Ministry announce successful conclusion of review at Querétaro plant of auto parts producer Unique Fabricating; during review, workers voted and selected a new union, and Mexican government monitored the vote. Unique Fabricating issued union neutrality statement and agreed with new union to provide the new and existing unions with equal access to the plant, take steps to prevent potential freedom of association violations, and provide the new union with dues from its affiliates. USTR announces that as a result of these actions, US agrees that there is no ongoing denial of rights; USTR Tai has directed Treasury Department to resume liquidation of entries of goods from Unique Fabricating plant. Links: Labor/Economy joint communiqué; US Labor Department press release; USTR press release; El Universal.

  • April 17: Secretariat of North American Commission on Environmental Cooperation recommends developing a factual record to investigate allegedly faulty environmental impact assessment procedures for the Tren Maya project of the Mexican government, including relevant studies and alleged fragmentation of the environmental impact studies, as well as the change in land use authorization and the implementation of the citizen complaint mechanism in relation to the project. Links: CEC press release; Secretariat recommendation; CEC registry page on Tren Maya submission.

  • April 13: North American Commission on Environmental Cooperation receives submission from a Mexican citizen under USMCA Chapter 24 asserting that Mexico is failing to effectively enforce its environmental laws to protect water quality from the effects of agave cultivation and tequila production in Jalisco, Mexico. Links: CEC press release; submission; CEC registry page for this submission.

  • March 31: USTR and Mexico announce agreement on course of remediation to address most recent Rapid Response Mechanism petition against Manufacturas Vu plant in Piedras Negras. Links: USTR press release; Secretaría de Economía press release; remediation agreement (original in English); unofficial Spanish language translation of remediation agreement

  • March 21: Panel at Wilson Center in Washington on “USMCA: Are the Dispute Settlement Mechanisms Functioning As Intended?” with USMCA negotiator Kenneth Smith Ramos and a moderated panel discussion, discussing status of disputes between US and Mexico on auto rules of origin, energy and GMO corn.

  • March 21: Labor organization CNV meets with European Parliament Committee on International Trade on its complaint submitted to EU Single Entry Point on May 22, 2022 concerning lack of compliance with sustainability chapter of EU-Andean Trade Agreement, in connection to Glencore mines in Colombia and Peru. Links: CNV press release; video of presentation.

  • March 20: US files first submission in second Canada - Dairy TRQ dispute. Link: Trade Agreements Secretariat e-filing site (for case documents)

  • March 20: New Zealand files first submission in its dispute against Canada’s administration of its dairy TRQs under CPTPP. Canada first submission due April 21.

  • March 17: Mexico’s Secretaría de Economía and Labor Ministry issue joint communiqué stating that they will review US March 6 request concerning denial of rights of free association and collective bargaining at auto parts maker Unique Fabricating de México plant in Santiago de Queretaro. Deadline for response: 45 days. Links: Joint communiqué; report in El Economista

  • March 16: Mexico’s Secretaría de Economía and Labor Ministry issue joint communiqué concerning their examination of labor situation at Manufacturas VU auto parts plant; states that serious irregularities exist and the company has acted to impede freedom of association and collective bargaining. Communiqué announces 10-day consultation with US government on a remediation plan.

  • March 11: Canada’s largest private sector union Unifor and Mexican autoworker union Sindicato Independiente Nacional De Trabajadores Y Trabajadoras De La Industria Automotriz (SINTTIA) submit complaint to Canada’s National Administrative Office concerning “systematic and continual denial of rights to freedom of association and collective bargaining” by Fränkische Industrial Pipes México S.A. De C.V. at its factory in Silao. March 13: Canada’s National Administrative Office (NAO) notifies submitters that petition has been accepted for review. As of May 24, Canadian government reported to be still considering this petition; SINTTIA said to be working on a recount in recent election. Links: Unifor-SINTTIA press release; NAO webpage

  • March 10: American Petroleum Institute, American Clean Power Association and National Association of Manufacturers write to USTR Tai arguing that Mexico has not engaged constructively in the consultation process, and urging her to use every tool available to enforce the USMCA. Links: Letter; Bloomberg report.

  • March 9: Panel composed and panel timetable announced in dispute brought by New Zealand against Canada’s administration of dairy tariff rate quotas under CPTPP. Panelists: Jennifer Hillman (chair), Petros Mavroidis, Colleen Swords. Links: NZ MFAT dispute settlement page with timetable and panel announcement. Non-governmental entities in New Zealand or Canada will have the opportunity to submit requests to provide written views in the dispute. Also: CBC News (Janyce McGregor) article on this dispute.

  • March 6: USTR Tai requests technical consultations with Mexico under USMCA Article 9.19.2, concerning: (1) Mexico’s rejection since August 2021 of authorization applications covering corn, canola, cotton, and soybean events, and consequent bans on products containing these events; (2) February 13, 2023 Decree banning use of GM corn for nixtamalization or flour production; and (3) Mexico’s decision (in the February 13 Decree) to gradually substitute GM corn used for animal feed and for human consumption other than in dough or tortillas. Technical consultations under USMCA Article 9.19 are a prerequisite to government-to-government dispute settlement under USMCA Chapter 31 concerning any sanitary or phytosanitary (SPS) measure. Links: USTR press release; US request for consultations; USDA press release; Mexico Ministry of Economy statement; Bloomberg; El Economista. March 7: President Lopez Obrador states that Mexico will not budge, will still implement a ban in some form on GM corn, and will go to a panel if there is no agreement in 30 days. March 7: Canada also requests technical consultations under USMCA Article 9.19.1 on Mexico GM measures.

  • March 6: USTR invokes labor Rapid Response Mechanism, and asks Mexico to review whether workers at auto parts maker Unique Fabricating de México plant in Santiago de Querétaro, State of Querétaro, are being denied rights of free association and collective bargaining. Links: USTR press release; US Labor Department press release; USTR request to Mexico; USTR request to Treasury Department to suspend liquidation of entries from Unique Fabricating plant; El Economista on the background.

  • March 4: EU union CTV International publishes complaint submitted May 22, 2022 to EU Single Entry Point on behalf of labor organizations in Colombia and Peru, alleging breach of Arts. 267, 269, 271 and 277 of Title IX of EU-Colombia-Peru Trade Agreement regarding obligation to comply with fundamental labour rights, freedom of association and the right to equality. Links: text of complaint. Nov. 16, 2020 EU press release on complaints system for trade and sustainable development provisions in EU trade agreements; Single Entry Point with links to complaint forms and explanations on how to file a complaint.

  • February 13: Mexican government issues decree banning genetically modified white corn for food use, while temporarily allowing GM corn for feed and industrial uses. Links: Mexican decree in Diario Oficial; Agri-Pulse; El Economista

  • February 10: USTR chief agricultural trade negotiator Doug McKalip tells Reuters that in a January 30 letter to Mexico’s Secretaría de Economía, he requested by February 14 an explanation of the science behind Mexico’s planned bans on GMO corn and on glyphosate; response will help USTR decide whether to bring a formal USMCA dispute. McKalip and others had met with Mexican government recently concerning these bans.

  • January 31: USTR announces establishment of a second USMCA dispute settlement panel on Canada’s dairy tariff-rate quota (TRQ) allocation measures. Announcement states that although US won the earlier USMCA dispute on Canada dairy TRQs, Canada’s revised measures have not fixed the problem. Links: USTR statement; US panel request; USTR press release with political and stakeholder reactions; Statement by Canadian Trade Min Mary Ng; Comment on the dispute by Janyce McGregor of CBC News; Agri-Pulse on US dairy exporter views

  • January 30: USTR transmits request to Mexico under the USMCA Article 9.6.14 for “an explanation of the reasons for” and “pertinent relevant information regarding” Mexican measures concerning biotech products. Mexico responds on February 14.

  • January 30: USTR invokes USMCA Rapid Response Mechanism for second time with respect to Manufacturas VU auto parts plant in Coahuila, Mexico. Links: USTR press release; US Labor Department press release; USTR request to Treasury Department to again suspend liquidation of entries from Piedras Negras plant; article in El Economista; in El Universal; Jacobin article

  • January 26: Sens. Ron Wyden and Mike Crapo call for strong enforcement of USMCA obligations through use of USMCA dispute settlement. Wyden-Crapo letter calls attention to Mexico preferences for state-owned energy suppliers; Mexico decree banning biotech corn and export tariff on white corn; Canada dairy TRQs and other dairy issues in USMCA; fishing conservation issues; Canada digital services tax; Canadian legislation on digital content and online news; labor laws in Mexico.

  • January 11, 4 pm: Final panel report dated December 2022 released, in USMCA dispute on US Automotive Rules of Origin, after conclusion of “3 Amigos” USMCA summit in Mexico City. Statement by USTR; statement by Canadian Trade Minister Mary Ng; video of PM Trudeau and Minister Ng; statement by Mexican Ministry of Economy; reporting by Alex Panetta of CBC; explanation from Larry Friedman’s excellent Customs Law Blog on “roll-up” in USMCA automotive rules of origin.

  • January 4: La Liga Sindical Obrera Mexicana (LSOM) and the Comité Fronterizo de Obreros y Obreras, A.C. announce that workers at Manufacturas VU plant in Coahuila, Mexico have submitted a renewed USMCA Rapid Response Mechanism petition to the US Labor Department concerning new denial of rights at the plant. Petition reportedly alleges that after the outcome of an August 31 representation election in favor of LSOM (see below), the company has refused to bargain in good faith and denied plant access to LSOM. Links: El Economista. January 10: 5 Members of Congress write in support of petition.

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    Last edited: February 20, 2024