USTR Cites Indian Tire Plant in Mexico

The United States is asking Mexico to review whether workers at Compañía Hulera Tornel SA de CV tire plant are being denied the right to freedom of association and collective bargaining. The request marks the 32nd time the United States has formally invoked the Rapid Response Labor Mechanism in the US-Mexico-Canada Agreement.

The request follows on a petition from an independent Mexican labor union alleging that Tornel is not applying the sector-wide agreement covering the rubber manufacturing industry at the facility and is instead applying a singular collective-bargaining agreement (CBA) with benefits inferior to those in the contrato ley.

The US government found that there is sufficient, credible evidence of a denial of rights enabling the good faith invocation of enforcement mechanisms. As a result, the United States Trade Representative’s Office has submitted a request to the Mexican government that Mexico review whether workers at Tornel are being denied the right to freedom of association and collective bargaining through Tornel’s failure to abide by the standards of the contrato ley. Mexico has 10 days to agree to conduct a review and, if it agrees, 45 days from yesterday to complete the review.

Tornel produces tires for industrial, cargo, off-road, agricultural and passenger vehicles that are exported to the United States. Compañía Hulera Tornel is part of JK Tyre group of India.  

US Trade Representative Katherine Tai has asked the Treasury Department suspend liquidation of tariffs on goods from the Tornel facility until the issue is resolved.