The US Trade Representative (USTR) asked the Mexican government to review the labor rights of workers at the Mexican unit of the German automaker Volkswagen, the fifth largest vehicle producer in Mexico, the Mexican government reported in a press release.
“The Ministry of Economy informed the USTR of the admission of a review request received on May 28, 2024, regarding a possible denial of freedom of association and collective bargaining rights at the Volkswagen de México facility located in Cuautlancingo, Puebla”, the agency reported.
The request is made under the Rapid Response Labor Mechanism of Annex 31-A of the Agreement between Mexico, the United States and Canada (USMCA).
In 45 days, the Mexican Ministry of Labor will conduct an internal review to determine if there is a denial of labor rights at Volkswagen Mexico.
According to USMCA rules, the penalty for denial of labor rights consists of the elimination of preferential tariff treatment for exported goods. In addition to fines and even a ban on the entry of goods into the US market in case of repeat offenses.
In the first five months of the year, Volkswagen manufactured around 169,300 vehicles, a figure that represented 10.2 percent of the 1.65 million vehicles manufactured by the 13 manufacturers in the country.