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United States authorities have asked Mexico to probe alleged worker rights violations at the Stellantis (NYSE:STLA) Teksid Hierro de Mexico auto-parts plant. The request follows a petition by the United Auto Workers and a Mexican labor union claiming that workers are being denied the freedoms of association and collective bargaining.
U.S. Trade Rep. Katherine Tai has directed Treasury Secretary Janet Yellen to suspend the sale of all unsold entries of goods from the Teksid Hierro plant.
The USMCA, which replaced the North American Free Trade Agreement in 2020, requires Mexico to have laws for the effective recognition of workers’ freedom to bargain collectively. It allows the United States to revoke the tariff-free status on exports from individual factories that fail to comply with domestic labor laws such as the reforms Mexico instituted in 2019. This is the fourth such complaint under the revised trade deal, U.S. officials said on Monday.
Mexico’s Economy Ministry said it would decide within 10 days whether to accept the U.S. request.
