The U.S. Trade Representative (USTR) on Monday asked Mexico to review allegations that workers at Madobox S.A. de C.V., a commercial packaging box manufacturer in Uruapan, Michoacán, were denied freedom of association and collective bargaining rights. USTR also directed the U.S. Treasury Department to suspend liquidation of unliquidated customs entries for goods produced at the Madobox facility. The suspension delays final customs processing and duty assessments but does not necessarily prevent the goods from entering the U.S.
The investigation was initiated under USMCA's Rapid Response Labor Mechanism, which allows the U.S. to challenge alleged labor violations at specific Mexican facilities. It follows a Sept. 30 petition filed by a Mexican union affiliated with COCENA, alleging that Madobox interfered with organizing activities, coerced and misled employees about their labor rights, and unlawfully dismissed workers for union activity. The U.S. Interagency Labor Committee for Monitoring and Enforcement found sufficient credible evidence to invoke the USMCA enforcement process.
Mexico has 10 days from the Nov. 2 request to agree to a review. If accepted, the Mexican government has 45 days from Nov. 2 to complete its investigation. Madobox produces corrugated cardboard packaging for agricultural products including avocados, mangoes, berries and tomatoes, according to its website, and supplies packaging for export markets.
In a separate announcement Monday, USTR said the U.S. and Mexico reached a memorandum of understanding addressing labor rights concerns at Industrias Tecnos S.A. de C.V., an ammunition manufacturer in Cuernavaca, Morelos. The dispute dates to May 2024, when a Mexican union alleged denial of collective bargaining and freedom of association rights. The U.S. requested a review in June 2024; Mexican authorities found no denial of rights, prompting Washington to request a USMCA dispute settlement panel. The new agreement establishes corrective measures, including verifying compensation for dismissed workers, implementing workplace neutrality policies, training employees on labor rights, and establishing confidential complaint mechanisms. Mexico agreed to monitor compliance. The memorandum set an Oct. 15 deadline for completing corrective actions, though USTR's Nov. 2 announcement did not specify whether all measures had been implemented. Industrias Tecnos manufactures Aguila Ammunition for sporting, hunting, law enforcement and military markets.
The two cases highlight continued enforcement of worker protections under USMCA. For Mexican manufacturers and their U.S. customers, labor enforcement can create customs compliance risks, adding another consideration for cross-border supply chains. Shippers from China to the U.S. with supply chain links to Mexican factories should monitor customs clearance status changes at affected facilities.