RTA DISPUTES NEWSFEED ARCHIVE 2017-2022

(REVERSE CHRONOLOGICAL ORDER)

2022

  • December 20: USTR requests dispute settlement consultations for a third time under USMCA Chapter 31, on Canada’s administration of its dairy TRQs. New request expands US complaint on Canada dairy TRQ allocation measures, to include Canada use of market-share approach for determining TRQ allocations. Links: USTR press release; text of consultation request; statement by Canadian Trade Minister Mary Ng.

  • Mid-December: In USMCA dispute on US Automotive Rules of Origin: due date for panel to transmit its final report to the parties in confidence; final report to be released later after translation.

  • December 12: Mexican Secretaría de Economía proposes work plan to accelerate consultations with US and Canada concerning Mexican government treatment of foreign energy sector companies. Work plan includes formation of technical work group to meet in Mexico City, and working groups to be established Dec. 2022-Jan. 2023 on four energy sector topics. Links: SE statement

  • November 14: Panel in USMCA Chapter 31 dispute on US Automotive Rules of Origin transmitted its initial report to the parties (Canada, Mexico, US), then received comments from the parties on the report. Initial ruling reported to find in favor of claims by Canada and Mexico: Nov. 24 report in El Universal

  • November 7: New Zealand requests a panel in its dispute under CPTPP concerning Canada’s administration of its TRQs on dairy. Links: Press release with statement by Min. Damien O’Connor; panel request; dispute settlement page on MFAT NZ website.

  • October 27: Following up on petition received on September 27 concerning Saint-Gobain glass plant union representation election, USTR and US Labor Department announce that the independent union won the election, and no further action on the petition will be needed.

  • October 27: EU Domestic Advisory Group under EU-Andean Trade Agreement meets and provides input to the trade agreement’s Committee on Trade and Development, concerning complaint filed by labor organization CNV on May 17 regarding breach of trade agreement labor provisions.

  • October 11: EU DG-Trade publishes second Annual Report on the Implementation and Enforcement of EU Trade Agreements. Links: Press release; Report and Staff Working Document; Infographic; 10-page Fact Sheet

  • September 27: AFL-CIO, United Steelworkers and Sindicato Independiente de Trabajadoras y Trabajadores Libres y Democráticos (Independent Union of Free and Democratic Workers) of Saint-Gobain Mexico file petition with US Department of Labor alleging multiple violations of worker’s rights at Saint-Gobain glass plant in Cuautla, Mexico. Links: Press release; Reuters; background on the controversy from El Economista

  • September 14: US and Mexico announce successful resolution of Rapid Response Mechanism petition related to Manufacturas VU facility in Piedras Negras, Coahuila. In a supervised union representation election, VU workers voted in favor of representation by an independent union, La Liga Sindical Obrera Mexicana (LSOM). USTR directed Treasury Department to resume liquidation of entries of goods from that Manufacturas VU facility. Links: Reuters

  • September 1: US rejects request by Mexican union SNITIS for investigation of alleged worker rights abuses by auto parts refurbisher BBB Manufacturing of Reynosa. According to USTR, SNITIS petition did not meet the USMCA standard of "sufficient, credible evidence of a denial of rights" necessary to trigger USMCA Rapid Response Mechanism. Links: Reuters

  • August 16: US and Mexico announce resolution of RRM petition concerning Teksid Hierro de México, SA de CV facility in Frontera, Mexico, and announce agreed remediation plan. USTR sends letter directing Treasury to resume liquidation of entries of goods from the Teksid Hierro plant.

  • August 11: EU and SACU release text of panel report in EU-SACU bilateral FTA dispute on poultry safeguards. Discussion of the panel report by Iana Dreyer in the Borderlex newsletter here.

  • August 5: Los Mineros (Sindicato Nacional de Trabajadores Mineros, Metalúrgicos, Siderúgicos y Similares de la República Mexicana) reported to have filed a Rapid Response Mechanism complaint with the US concerning the 15-year strike at the Grupo México mine at Sombrerete in Zacatecas.

  • August 3: EU announces that panel ruled in its favor in bilateral dispute with Southern African Customs Union (SACU) under EU-SADC EPA, on SACU’s safeguard measure on imports of EU frozen chicken cuts. According to EU, panel found that safeguard went beyond what was needed to remedy or prevent any serious injury or disturbance; also, panel found that delay between investigation and adoption of safeguard measure was excessive and inconsistent with EU-SADC EPA. Safeguard measure expired on March 11, 2022 and was not extended.

  • August 3: SACU announces “landmark victory for the SACU poultry industry” in the same dispute; notes that EU failed to prove that EU imports had not caused injury.

  • August 2-3: Panel hearing in USMCA dispute on Automotive Rules of Origin takes place in Washington DC. Hearing was livestreamed to public who registered with USMCA Secretariat in advance.

  • August 2: Mexican labor union SNITIS and US NGO Rethink Trade announce filing of Rapid Response Mechanism petition concerning BBB Manufacturing, a firm that refurbishes auto parts in Mexican border city of Reynosa. Links: Reuters. El Economista. Rethink Trade.

  • July 21: US requests review by Mexico of alleged denial of rights at the Piedras Negras (Coahuila) plant of Manufacturas VU, a producer of automotive moldings. This is the 5th US request under the USMCA Rapid Response Mechanism. Links: USTR press release; US request for review; USTR request to suspend liquidation of entries of goods imported from that plant. Ministry of Economy press release. July 29: Mexico’s Ministry of Economy announces it has agreed to investigate alleged denial of labor rights at Manufacturas VU plant in Coahuila (coverage in El Economista).

  • July 21: MOCE Yax Cuxtal, A.C., Grupo Gema del Mayab, A.C., and other environmental and indigenous rights groups and individuals submit petition to USMCA Commission on Environmental Cooperation (CEC), concerning Mexican government’s Tren Maya (Mayan Train) project in Yucatan, arguing that this project did not undergo an adequate environmental impact assessment (EIA) process. Links: text of submission; CEC press release; docket for this petition; commentary

  • July 20: US requests consultations under USMCA Chapter 31 with Mexico concerning measures by Mexico that undermine American companies and U.S.-produced energy in favor of Mexico’s state-owned electrical utility, the Comisión Federal de Electricidad (CFE), and state-owned oil and gas company, Petróleos Mexicanos (PEMEX). Measures challenged: 2021 amendment to Mexico’s Electric Power Industry Law that prioritizes CFE-produced electricity over electricity generated by all private competitors; Mexico’s inaction, delays, denials, and revocations of private companies’ abilities to operate in Mexico’s energy sector; December 2019 regulation granting only PEMEX an extension to comply with maximum sulfur content requirements under Mexico’s applicable automotive diesel fuel standard; and June 2022 action advantaging PEMEX, CFE, and their products in the use of Mexico’s natural gas transportation network. July 21: Canada announces it is requesting consultations with Mexico on the same measures. Links: USTR press release; Text of consultation request; USTR “What they are saying” press release with links to articles in US press and reactions in Congress to complaint; Ministry of Economy press releases; reports on Pres. Lopez Obrador press conference on the complaint; more commentary (1), (2), (3) clips from Lopez Obrador July 28 press conference; Reuters coverage on reactions

  • July 7: Canada’s Trade Minister Mary Ng announces, and USTR announces, agreement to remove US safeguard tariffs from Canadian solar products, following the February 2022 USMCA panel report. USTR states that this bilateral MOU “constitutes a resolution of this outstanding dispute” and that it “promotes greater North American solar supply integration”; “reaffirms both countries’ commitment to prohibit imports of solar products produced in whole or in part with forced or compulsory labor”; and “contains a mechanism to ensure that solar product imports from Canada do not undermine the existing U.S. safeguard measure on imports of solar products”. July 8: Canada and US sign MOU: signed text of MOU is here. July 20: USTR publishes Federal Register notice (which describes the MOU as an agreement limiting export from Canada and import into US of solar (CSPV) products). FR notice suspends application of the US solar safeguard to imports of such products originating in Canada, retroactive to February 1, 2022; US Customs issues guidance (here).

  • June 22: EU Commission unveils new plan to strengthen implementation and enforcement of Trade and Sustainable Development (TSD) chapters of EU trade agreements; new approach will apply to future negotiations and to ongoing negotiations as appropriate. New approach will apply standard state-to-state dispute settlement procedures to TSD chapters of EU trade agreements; party found to violate TSD commitments will have to promptly state how it will comply and when. Agreements will provide for trade sanctions, as a last resort, for serious violations of core TSD commitments (the ILO fundamental principles and rights at work, or the Paris Agreement on Climate Change). Trade sanctions will be temporary and proportionate, may take the form of suspension of trade concessions; will be possible only if breaching party does not bring itself into compliance within stated time period; settlement still possible at any time. EU will also make it easier for civil society and Domestic Advisory Groups (DAGs) to lodge complaints on violations of sustainability commitments, and is instituting timelines for Commission handling of TSD complaints. Links: Commission press release; Commission Communication; Factsheet; DG-Trade Single Entry Point; November 2021 consultant report to EU on comparative analysis of TSD provisions in third country trade agreements.

  • June 13: Secretariat of the USMCA Commission on Environmental Cooperation (CEC) recommends that the CEC should develop a factual record to explore US enforcement activities to protect the North Atlantic right whale along the US east coast. CEC Council should vote on this recommendation within 60 days.

  • June 6: USTR and US Labor Department announce a fourth request to the Mexican government to review whether workers at the Frontera, Coahuila plant of Teksid Hierro de Mexico, S.A. de C.V. are being denied rights of free association and collective bargaining. This request responds to a May 5 petition from the UAW, the AFL-CIO, and a Mexican union, Sindicato Nacional de Trabajadores Mineros, Metalúrgicos, Siderúgicos y Similares de la República Mexicana (SNTMMSSRM - Los Mineros). USTR requested that US Customs suspend liquidation of entries into the US of goods from the Teksid Hierro plant. Links: El Economista.

  • June 1: Colectivo Playa Hermosa submits submission under USMCA Article 24.27 to CEC arguing that Mexico is failing to effectively enforce its environmental laws to protect the coastal ecosystem of Playa Hermosa, a local beach located in Ensenada, Baja California, Mexico; submitters assert that state and municipal governments are undertaking a beachfront development project in Playa Hermosa without necessary federal environmental impact permits.

  • May 25: US brings second USMCA dispute challenging to Canada dairy TRQ administration. New consultation request on Canada revised policies focuses on (1) continued limit on TRQ eligibility to processors, further processors, and distributors (excluding others such as retailers and food service operators); (2) requirement for TRQ eligibility that an applicant must be active during all 12 months of a 12-month reference period, potentially excluding otherwise eligible applicants, in particular new entrants; (3) failure by Canada to allocate all of its dairy TRQs for calendar year 2022 even though USMCA requires Canada to fully allocate the TRQs at beginning of year; (4) failure to comply with commitments on transparency and notice in TRQ administration.

  • May 18: USTR announces a new request to the Mexican government to review whether workers at the Reynosa plant of Panasonic Automotive Systems de Mexico are being denied the rights of free association and collective bargaining. This third request under the USMCA Rapid Response Mechanism responds to an April 18 petition by the independent union SNITIS and the US NGO Rethink Trade. On April 22, the Mexican government announced that workers at the Reynosa plant had voted 75%-25% for SNITIS in a union representation election. USTR requested that US Customs suspend liquidation of entries into the US of goods from the Reynosa plant. Links: Rethink Trade press release; El Economista; Rep. Pascrell statement. Update June 8: according to El Economista, SNITIS has announced it will strike unless agreement on a collective bargaining agreement is reached by June 9. July 14: USTR and US Department of Labor announce successful resolution of matter. USTR requests Treasury Department to resume liquidation of entries from Reynosa plant.

  • May 16: EU union CTV International submits complaint 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-Ecuador-Peru Trade Agreement in relation to outsourcing of mining jobs in mines owned by Glencore in Colombia and Peru. Links: text of May 16 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.

  • May 16: Canada announces new policies for dairy TRQ allocation and administration under USMCA, in response to USMCA panel decision on dairy TRQ allocation; announcement notes that “given Canada’s deep concerns with the discriminatory electric vehicle tax credits proposed in the Build Back Better bill under U.S. Congress consideration, a decision regarding the potential allocation of the previously unallocated quota under the 2022 CUSMA calendar year dairy TRQs will be taken as the issue evolves, but not later than July 31”. Trade Minister Ng states that Canada is “confident that the new policies fully comply with the panel’s findings and its recognition that Canada has the full discretion to administer its TRQs under [USMCA] in a manner that supports Canada’s supply management system for dairy”. USTR Tai states that US is “deeply disappointed” by Canada’s announcement, will evaluate all options and work with stakeholders and Congress.

  • May 12: New Zealand brings the first CPTPP dispute, concerning Canada’s implementation of dairy tariff rate quotas under the CPTPP. NZ Minister’s press release argues that many Canada dairy TRQs are unfilled, costing NZ dairy importers NZ$68m in first two years and escalating as TRQ sizes increase. Consultation request here. Press: CBC (2022); CBC report from 2018 on allocation of CPTPP dairy quotas; Twitter thread on Canadian dairy quota allocation.

  • May 11: SINTTIA independent union at GM’s Silao plant in Guanajuato announces that it has reached a deal for a new workers' contract with raises and benefits above inflation rate. Bloomberg reports wage raise of 8.5% plus bonuses, for total 13.8% wage increase. Press reports: Reuters; Expansión; Bloomberg.

  • April 18: Sindicato Nacional Independiente de Trabajadores de Industrias y de Servicios Movimiento 20/32 (SNITIS) and US NGO Rethink Trade announce filing of a USMCA Rapid Response Mechanism petition with US Labor Department, concerning conflict at Reynosa, Mexico plant of Panasonic Automotive Systems de Mexico S.A. de C.V., which makes audio/video systems for autos in USMCA market. Press: El Economista, Reuters. April 19: Petition by SNITIS to US Labor Department urges immediate suspension of liquidation of tariffs on US imports from this Panasonic plant: El Economista. April 22: After two-day election, Mexican government announces that workers at the Panasonic plant voted 75%-25% for SNITIS over the CTM-affiliated union, Sindicato Industrial Autónomo de Operarios en General de Maquiladoras de la República Mexicana (SIAMARM). Press: El Economista, Reuters.

  • April 1: Secretariat of the USMCA Commission for Environmental Cooperation (CEC) recommends developing a factual record to explore factors contributing to near-extinction of vaquita porpoise in the Gulf of California in Mexico (related to illegal catch of totoaba fish), responding to Submission on Enforcement Matters submitted on August 12, 2021 by four conservation groups under USMCA Chapter 24. See also CEC press release. See September 13 article on China Trade Monitor website about: effect on totoaba and vaquita populations of Chinese demand for totoaba fish bladders for traditional medicine; Mexico and China initiatives to crack down on illicit traffic in totoaba bladders; and Mexico-China discussions.

  • March 29: Canada and Mexico file their initial written submissions in the Automotive Rules of Origin dispute. March 31 and April 4: the Asociación Mexicana de la Industria Automotriz and the Global Automakers of Canada request leave to submit written views to the panel. April 14: The panel agrees; submissions due by May 27 and parties may respond by June 3. April 14: Panel issues its timetable.

  • March 23: the three parties to the USMCA dispute on Automotive Rules of Origin notify the USMCA Secretariat that they have selected a panel of five: Elbio Rosselli (Chair); Prof. Kathleen Claussen (appointed by Canada); Ann Ryan Robertson (appointed by Mexico); Jorge Miranda (appointed by US); and Prof. Donald McRae (appointed by US).

  • March 1: The Canadian government posts a proposal for implementation of the panel report in the USMCA dispute on Dairy TRQs, and requests comments from stakeholders by April 19, 2022. Proposal focuses on the panel finding regarding reserving TRQ pools exclusively for the use of processors. March 3: US dairy producers and exporters denounce the proposal as denying market access.

  • February 28, 2022: Workers at Tridonex auto parts plant in Matamoros, Mexico choose the independent union SNITIS over the existing CTM-affiliate CITPME union, by 84% (1126 to 176). Mexican government announcement of results; USTR/US Labor Department statement; report by El Economista; by Reuters.

  • February 15, 2022: Panel report released in USMCA dispute, Crystalline Silicon Photovoltaic Safeguard Measure. Panel finds that application of US safeguard measure to imports of crystalline silicon photovoltaic (CSPV) products (solar cells, modules, panels) originating in Canada is inconsistent with USMCA Article 10.2.1. Panel Report here; Backgrounder by Global Affairs Canada; Press statement by Canadian Trade Minister Mary Ng. Parties have 45 days to reach agreement and resolve the dispute.

  • February 10, 2022: USTR announces request to Mexican government under USMCA Article 24.29 for consultations concerning Mexico’s USMCA Environment Chapter obligations relating to protection of critically endangered vaquita porpoise (Phocoena sinus), prevention of illegal fishing, and trafficking of totoaba fish (Totoaba macdonaldi). (See also USTR press release on reactions of US Congress, stakeholders and press.) Statement by Mexico’s Ministry of Economy notes receipt of request and states that the Ministry will coordinate Mexico’s response in the consultations.

  • February 4, 2022: President Biden proclaims extension of safeguard action on solar cells/modules/panels. President directs USTR to negotiate agreements with Canada and Mexico regarding exclusion of Canada and Mexico from the extended safeguard. Canadian Trade Minister Mary Ng tweets: “Canada is pleased to see @POTUS recognize the exceptional nature of the Canada-U.S. relationship in today’s solar statement. By working together we will meet our shared climate goals, create jobs, and build a strong industry. Stay tuned…” Mexican Ministry of Economy announces that it will negotiate agreement with USTR, and in parallel evaluate taking measures consistent with USMCA and the WTO Agreement, including rights to exclusion and compensation or suspension of concessions.

  • February 3, 2022: Mexican government Centro Federal Laboral announces that new independent union (Sindicato Independiente Nacional de Trabajadores y Trabajadoras de la Industria Automotriz, SINTTIA) won 76.5% of votes cast by workers at the Silao GM light truck plant; GM declares it will negotiate a new collective bargaining agreement with SINTTIA. (More from El Economista) Election on February 1-2, 2022 followed proceedings under Labor chapter and Rapid Response Labor Mechanism of USMCA. (Statements by USTR, US Labor Department, US Embassy Mexico). March 15: El Economista backgrounder on SINTTIA.

  • February 3: Deadline for settlement of dairy TRQ dispute. Agricultural press reports that Canada transmitted proposal on February 2. Politico Pro reports that the governments are discussing compliance and prefer agreement rather than retaliation.

  • January 24: SACU submits its First Written Submission in dispute brought by EU concerning SACU safeguard on frozen bone-in chicken cuts, under EU-SACU EPA.

  • January 6: Mexico requests a panel in its dispute concerning US application of USMCA automotive rules of origin. January 13: Canada notifies it will also participate in the dispute. Canadian trade minister’s statement; statement by Mexican trade minister welcoming Canada’s participation.

  • January 4: Panel in US v. Canada dispute on Canada’s administration of its dairy TRQ under USMCA issues its panel report. This is the first panel dispute under USMCA. USTR press release; Canada Global Affairs press release. 12 January 2022: Blogpost by former Canadian trade negotiators analyzing the roots of this case, the panel report and likely compliance paths by Canada.

  • January 3, 2022: Panel in USMCA dispute concerning US solar safeguard measure transmits confidential initial report to the parties to the dispute. Timetable going forward (according to USMCA): Final report transmitted to parties no later than 30 days after initial report (by February 2); Final report released to public within 15 days thereafter (by February 17).

2021

  • December 21, 2021: EU first written submission in EU dispute concerning SACU safeguard on frozen bone-in chicken cuts.

  • December 8, 2021: EU Commission announces that a panel has been established in the EU’s dispute with the South African Customs Union (SACU) on SACU’s safeguard on imports of frozen bone-in chicken cuts, under the EU-SADC Economic Partnership Agreement. Panelists: Mr. Makane Moïse Mbengue (Chairperson); Ms. Hélène Ruiz Fabri (selected by EU); Mr. Faizel Ismail (selected by SACU). Commission expects a panel ruling by Q2 2022.

  • October 4, 2021: US-based ocean advocacy NGO Oceana files submission under USMCA Article 24.27 with the USMCA Commission on Environmental Cooperation (CEC), arguing that the US government is failing to effectively enforce its environmental laws to adequately protect the critically endangered North Atlantic right whale. Submission requests that the CEC Secretariat develop a factual record, as contemplated by Article 24.28, on an expedited basis, to clarify US failure to protect these whales and enable development of a successful conservation strategy.

  • August 20, 2021: Government of Mexico requests consultations with US under USMCA Article 31.4 “for the purpose of avoiding or settling a potential dispute” regarding US application of USMCA rules of origin for motor vehicles: specifically, calculation of regional value content for motor vehicles. Ministry of Economy press release; consultation request; English-language translation. Report and analysis in El Economista (Mexico City). 27 August: Canada joins consultations (Reuters report).

  • August 19, 2021: Result of vote at GM Silao plant announced: majority of workers at Silao GM plant vote to reject collective bargaining agreement with Miguel Trujillo Lopez union, part of Confederation of Mexican Workers (CTM). USTR issues statement congratulating Labor Ministry and stating USTR will continue to work with Mexican counterparts to protect the rights of North American workers. Analysis in El Economista (Mexico City). September 22: USTR Tai and Labor Secretary Walsh announce successful conclusion of remediation process at Silao plant; Tai directs Treasury to resume liquidation of entries of goods from Silao plant.

  • August 12, 2021: Conservation groups submit a Submission on Enforcement Matters under USMCA Article 24.27 to the USMCA Commission on Environmental Cooperation (CEC), alleging that the Mexican government is failing to effectively enforce several environmental laws and as a result has caused the near extinction of the vaquita porpoise (of which only 10 remain). CEC proceeds to examine the submission and Mexico’s response. CEC registry of submissions on the vaquita porpoise: here.

  • August 10, 2021: USTR and auto parts firm Tridonex (Mexican subsidiary of Cardone Industries) announce agreement that Tridonex will provide severance, back pay and a commitment to neutrality in future union elections. USTR announcement also notes that the Government of Mexico has agreed to help facilitate workers’ rights training for Tridonex employees, monitor any union representation election at the facility, and investigate any claims of workers’ rights violations reported by employees at the plant. Joint Communiqué by Mexico’s Ministries of Economy and Labor notes the USTR announcement, and states that Mexico’s investigation of the petition regarding Tridonex had shown that the facts took place prior to 1 July 2020 entry into force of USMCA, therefore there was no denial of rights for workers at the plant within the scope of USMCA. 11 August: At press conference, Mexican Secretary of Economy Tatiana Clouthier notes that acts or facts which took place prior to USMCA entry into force are not subject to the treaty, and Mexico will not accept disputes under the Rapid Response Mechanism concerning facts prior to that date. Clouthier notes that the agreement announced on 10 August was reached between USTR and Cardone Industries in the US concerning actions to be taken by Tridonex.

    July 30, 2021: International Labour Organization announces that the governments of Mexico and the US have invited the ILO to participate as the international observer during a vote to confirm a collective bargaining agreement at the General Motors (GM) plant in Silao, Mexico on 17-18 August; this vote is part of the remediation plan announced on 8 July.

  • July 12 2021: US initial written submission in CUSMA/USMCA Chapter 31 dispute Dairy Allocation Measures (CDA-USA-2021-31-01; 27 pages).

  • July 8, 2021: US and Mexico announce settlement of USMCA Rapid Response Mechanism issues regarding GM plant in Silao, through agreement with Mexico for a comprehensive remediation plan to address denial of worker rights. USTR Tai releases statement that the settlement shows how USMCA can help Mexican workers and help US workers by preventing a race to the bottom. According to USTR’s fact sheet, the remediation plan includes a new vote to be held by August 20, and it specifies conditions for the vote (further details on USMCA webpage). USTR will monitor implementation closely, and if after August 20 the US determines the Denial of Rights has not been remediated, the US may decide to impose further remedies.

  • July 5: Canada and US complete panel selection for the CUSMA/USMCA Chapter 31 dispute Dairy TRQ Allocation Measures (CDA-USA-2021-31-01). Panelists: Elbio Rosselli, Julie Bédard, Marc Hansen. USMCA Article 31.17 provides: "The panel shall present an initial report to the disputing Parties no later than 150 days after the date of the appointment of the last panelist…." 150 days after July 5 is December 2, 2021.

  • June 28, 2021: Mexico sent a letter to the US regarding the USMCA Rapid Response Mechanism case on the GM plant in Silao. According to Reuters, and (in more detail) El Economista here and here, the Labor Ministry told the union at the plant that it must hold another vote by August 20 on whether to accept the current contract, and if not it will lose that contract. The objective of this remediation is to ensure that the majority of workers at the GM Silao plant will be able to vote freely and without intimidation. The US and Mexico will have 10 days to agree on the remediation plan.

  • June 19, 2021: Mexico’s Ministries of Economy and Labor state that they have received request regarding Tridonex plant and will review the case.

  • June 18, 2021: Canada requests establishment of a panel under USMCA Chapter 31, regarding US failure to exclude Canada from the US safeguard measure on imports of solar cells/modules/panels imposed under Section 201 of the Trade Act of 1974; Canada alleges breaches of Chapters 2 and 10 of USMCA.

  • June 9, 2021: USTR announces another invocation of USMCA Rapid Response Mechanism, with request by US to Mexico to review whether workers at the Tridonex auto parts plant in Matamoros, Tamaulipas are being denied rights of free association and collective bargaining. Request resulted from review of May 10 labor union petition noted below.

  • May 25, 2021: USTR announces US panel request and panel establishment in the dispute concerning Canada’s measures allocating dairy tariff quotas under USMCA.

  • May 12, 2021: USTR announces first use of USMCA Rapid Response Mechanism, with transmission of request by US to Mexico to review whether workers at a General Motors (GM) facility in Silao, Guanajuato are being denied the right of free association and collective bargaining. USTR and US Department of Labor received information indicating violations of worker rights in connection with recent vote organized by existing union to approve a collective bargaining agreement. USTR Tai directs Treasury Department to suspend liquidation (suspend final settlement of customs accounts) for entries of goods from GM’s Silao facility.

  • May 12, 2021: Government of Mexico transmits letter to US Secretary of Labor Walsh, raising concerns regarding lack of compliance with labor laws in US agriculture and meat-packing industries; letter proposes cooperation under USMCA Article 23.12 to identify actions to address such non-compliance in US sectors and states and fully guarantee labor rights under US law and USMCA Chapter 23 (press release in Spanish; English)

  • May 10, 2021: AFL-CIO, Service Employees International Union, Public Citizen Global Trade Watch, and Sindicato National Independiente de Trabajadores de Industrias y Servicios “Movimiento 20/32” announce filing of first complaint under USMCA Rapid Response Mechanism Interim Procedural Guidelines, requesting establishment of panel to investigate denial of labor rights at Tridonex S de RL de CV auto parts plants in Matamoros, Tamaulipas, Mexico.

  • May 10, 2021: EU Commission proposes draft EU Decision establishing EU position to be taken in the EU-Algeria Association Council. Text of draft Decision and explanatory Memorandum here. EU would propose adoption of a Decision of the EU-Algeria Association Council (text here), which would set dates for elimination of the measures at issue, and authorize the EU to suspend concessions or obligations under the Association Agreement in the event of non-compliance.

  • March 24, 2021: Alliance for Trade Enforcement, a multi-association coalition, sends 5-page letter to USTR Tai signed by 18 trade associations, on concerns regarding Mexico’s compliance with USMCA obligations.

  • March 19, 2021: EU delegation in Algeria transmits note verbale initiating arbitration under Article 100 of the EU-Algeria Association Agreement concerning measures raised in EU note verbale of 24 June 2020; EU nominates Mme. Helene Ruiz-Fabri as one of the arbitrators. (Reportedly, Algeria did not nominate its arbitrator and the dispute settlement process did not move forward.)

  • January 25, 2021: Panel releases its final panel report, in EU-Korea dispute on Korea’s implementation of EU-Korea FTA labor rights provisions. EU press release here; analysis by Prof. Steve Peers here.

2020

  • December 22, 2020: Canada requests consultations with US under USMCA Chapter 31, concerning US inclusion of Canadian exports in the scope of the US safeguard measure on solar cells/modules/panels; Canada alleges breach of Chapters 2 and 10 of USMCA. (Canada brought a similar complaint under NAFTA Chapter 20 on 23 July 2018, see below, but did not pursue a NAFTA panel.)

  • December 18, 2020: EU Commission launches call for candidates for a roster or arbitrators, and a separate roster of trade and sustainable development experts, for EU trade agreements; applications to be submitted by 1 February 2021. EU also sets in place new system for appointment of arbitrators, to ensure excellence and address lack of gender balance in EU’s existing pool of arbitrators: press release here (link to PDF format)

  • December 15, 2020: EU Council releases text of draft Council Decision with list of 25 arbitrators for disputes under the EU-UK Withdrawal Agreement and reserve list of EU arbitrator replacements.

  • December 14, 2020: Panel in EU-Ukraine dispute on Ukraine wood export ban releases its final panel report. Panel finds that Ukraine’s 2005 export ban on ten rare and valuable wood species, and ten-year total ban wood exports enacted 2015, both are incompatible with ban on export restrictions in EU-Ukraine Association Agreement. Applying GATT Article XX through Art. 36 of Association Agreement, panel finds 2005 export ban justified as measure necessary to protect plant life (Art. XX(b)) but 2015 export ban not justified under Art. XX(g).

  • December 9, 2020: USTR announces a request for consultations under USMCA Chapter 31 dispute settlement procedures, concerning Canada’s measures allocating dairy tariff rate quotas under USMCA. This is the first dispute launched under USMCA, which entered into force on 1 July 2020.

  • September 21, 2020: EU, Ukraine and Panel announce that panel hearing in EU-Ukraine dispute on Ukraine wood export ban will hold its hearing as a virtual hearing online on 22-23 September. 22-23 September 2020: Virtual hearing held; EU later posts online its opening statement, closing statement, responses to Panel questions, and integrated executive summary.

  • September 15, 2020: EU and Korea announce that Panel in EU-Korea dispute on workers’ rights in Korea will hold a virtual hearing on 8-9 October due to pandemic travel restrictions; announce replacement of panel chair. 8-9 October: Hearing held by videoconference; in November the parties issue an agreed summary of the hearing.

  • July 1, 2020: USMCA enters into force. Canada, Mexico and US announce roster for Chapter 31 (state-to-state) disputes, roster for US-Mexico Rapid Response Mechanism, roster for Canada-Mexico Rapid Response Mechanism.

  • June 24, 2020: Note Verbale by the EU Commission, on behalf of the EU, refers a dispute to the Council of the EU-Algeria Association Agreement, concerning measures of Algeria including a ban on imports of automobiles, tariff surcharges on imports, tariff increases on telecommunications hardware, non-automatic import licensing and measures restricting contract terms for imports.

  • April 21, 2020: EU requests panel in EU-SACU dispute on SACU safeguard measure on bone-in chicken cuts from the EU

  • March 31, 2020: In light of COVID-19 travel restrictions, Parties and panel agree to postpone hearing in EU-Korea dispute on workers’ rights in Korea (originally scheduled for 14-16 April at WTO building in Geneva); new date likely mid-June

  • March 27, 2019: In light of COVID-19 travel restrictions, parties and panel agree to postpone hearing in dispute on Ukraine’s wood export ban; revised schedule to be announced “in due course”

  • February 17, 2020: EU makes written submission in EU-Ukraine dispute on Ukraine’s wood export ban

  • January 28, 2020: Panel established in EU-Ukraine dispute on Ukraine’s wood export ban.

  • January 20, 2020: EU makes its first submission in EU-Korea dispute on workers’ rights in Korea.

    2019

  • December 19, 2019: EU and Korea complete panel selection in EU-Korea dispute on workers’ rights in Korea; panel was established and started work on 30 December 2019; report was due by end of March 2020.

  • December 11, 2019: EU Commission launches proposal to strengthen trade agreement enforcement including enforcement of bilateral trade agreements. Links: press release; proposal; memo; infographic.

  • November 1, 2019: USTR press release welcomes passage by Korea’s National Assembly of amendments to Korea’s Distant Water Fisheries Development Act, strengthening Korea’s regime to deter and penalize illegal, unreported, and unregulated (IUU) fishing.

  • September 19, 2019: US requests consultations with Korea under the Environment chapter of the Korea-US (KORUS) Free Trade Agreement, concerning failure to apply sufficient sanctions to deter Korean vessels from engaging in fishing activities that violate conservation and management measures adopted by the Commission for the Conservation of Antarctic Marine Living Resources. Links: USTR press release; US National Marine Fisheries Service report. October 17: US and Korea hold environment consultations in Seoul.

  • July 9, 2019: US holds consultations with Korea under Korea-US FTA chapter on Competition-Related Matters. Link: US press release.

  • July 4, 2019: EU requests a panel under the EU-Korea Free Trade Agreement concerning labor commitments in FTA Chapter 13. Links: EU press release; EU panel request.

  • June 20, 2019: EC requests a panel under the EU-Ukraine Association Agreement in its dispute concerning Ukraine’s export ban on unprocessed wood. Links: EU press release; EU panel request. See also 4 July blogpost by Iulianna Romanchyshyna on the International Economic Law & Policy Blog, discussing the Ukrainian measures, the EU claims, and possible Ukrainian defenses.

  • June 14, 2019: EU requests consultations with the Southern African Customs Union (SADC) on safeguard measures affecting frozen chicken cuts from the EU. Links: EU press release; EU consultation request; detailed note on the factual background by EPAMonitoring.net.

  • March 15, 2019: US requests consultations with Korea under the chapter on Competition-Related Matters of the KORUS Free Trade Agreement, concerning procedures in competition hearings held by the Korea Fair Trade Commission (KFTC). US argues that recently drafted amendments to Korea’s “Monopoly Regulations and Fair Trade Act” fail to address U.S. concerns that KFTC hearings deny U.S. firms due process rights under the KORUS agreement (opportunity to review and rebut evidence) that are necessary to secure a fair competition hearing in Korea. Link: USTR press release.

  • January 16, 2019: EU requests dispute settlement consultations with Ukraine under EU-Ukraine Association Agreement concerning Ukraine’s failure to eliminate a long-standing ban on exports of unprocessed wood. Links: EU press release; EU consultation request.

  • January 4, 2019: US requests environment consultations with Peru under Chapter 18 on Environment of Peru-US Trade Promotion Agreement; 9 April 2019, US announces successful resolution of its concerns as result of decree by Peru’s Council of Ministers.

    2018

  • December 18, 2018: EU requests formal consultations with Republic of Korea concerning labor commitments of EU-Korea trade agreement. Concerns expressed included respect for ILO principles of freedom of association and right to collective bargaining, and failure to ratify four ILO conventions (two on freedom of association/right to collective bargaining, and two on forced labor). EU press release and consultation request.

  • July 23, 2018: Canada initiates dispute under NAFTA Chapter 20 concerning US decision to include imports of Canadian solar panels in the January 2018 US safeguard action on solar panels under Section 201 of the Trade Act of 1974. Global Affairs Canada press release; consultation request.

    2017

  • June 27, 2017 release of Panel Report on Guatemala compliance with labor obligations under CAFTA-DR.

Last updated: Apr. 18, 2022