USTR Invokes RRM on Mexican Miner

United States Trade Representative Katherine Tai announced today that the U.S. has requested Mexico to review labor practices at the San Martin mine, located in the state of Zacatecas.

Owned by Grupo México, one of the largest mining conglomerates in the country, the mine has been the subject of allegations concerning workers' rights to freedom of association and collective bargaining.

This marks the eleventh time the U.S. has invoked the Rapid Response Labor Mechanism (RRM), a provision of the United States-Mexico-Canada Agreement (USMCA), designed to address labor rights issues rapidly and effectively.

It also signifies the sixth such invocation in 2023 alone, suggesting a marked increase in U.S. scrutiny over labor practices in its neighboring countries.

"Earlier this week, we used the RRM for the first time in the garment sector, for a case involving Industrias del Interior (a Levi Strauss & Co. denim plant)," said Ambassador Katherine Tai. "Today's announcement underscores the breadth of our commitment to defending workers' rights across different industries and demonstrates the versatility of the RRM."

As part of the U.S. request, Ambassador Tai has instructed the Secretary of the Treasury to halt the final settlement of customs accounts associated with goods originating from the San Martin mine. This move could potentially impact Grupo México's trade activities with the U.S.

The Deputy Undersecretary for International Affairs, Thea Lee, commented on the importance of a union’s exclusive status as the collective bargaining representative and its right to strike. Lee stated, "These rights are key to Mexico’s labor reform. We appreciate our collaborative partnership with the Mexican government and hope to resolve this issue while protecting workers’ rights."

The petition triggering this review was submitted on May 15 by the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), the United Steel Workers (USW), and the Mexican union Sindicato Nacional de Trabajadores Mineros, Metalúrgicos, Siderúgicos y Similares de la República Mexicana (Los Mineros).

The petition alleges that Grupo Mexico has violated labor rights by resuming operations at the San Martin mine during an ongoing strike and negotiating collective bargaining with a group of workers, bypassing Los Mineros, the legally recognized representative for collective bargaining.

Under the RRM, Mexico has ten days to agree to conduct the requested review. If it concurs, the Mexican government will have 45 days to complete the process.