Mexico pledges cooperation to remedy worker rights at GM plant

The Mexican government told the U.S. that it’s ready to work with the Biden administration to draw up a plan to remedy the denial of workers’ rights at a General Motors Co. pickup-truck plant in central Mexico.

President Andres Manuel Lopez Obrador’s administration sent its response last Friday, ahead of the end of a 45-day window for the nation to answer to a U.S. complaint under the U.S.-Mexico-Canada trade agreement, according to people familiar with the case, who asked not to be identified because they weren’t authorized to speak publicly about the case.

The countries now have 10 days to consult and agree on remediation measures. If no agreement can be reached, the U.S. may request the establishment of a so-called rapid-response labor panel to determine whether there has been a denial of collective-bargaining rights. If the panel were to determine a denial of rights, the U.S. could impose remedies such as the revocation of free-trade status for the trucks, meaning the vehicles would face a 25% tariff.

The press office of Mexico’s economy ministry declined to comment, while the Office of the U.S. Trade Representative didn’t respond to a request for comment.

The U.S. last month asked Mexico to review alleged denial of workers’ rights at the GM plant in Silao, Guanajuato, the first time Washington self-initiated a labor dispute under the new trade pact between the countries. U.S. Trade Representative Katherine Tai had asked Mexico to review whether employees at the facility are being denied the right of free association and collective bargaining.