US Invokes USMCA Rapid Response Labor Mechanism Against Latex Occidental Facility
Summary
The USTR invoked the USMCA Rapid Response Labor Mechanism against Latex Occidental, S.A. de C.V. in Guadalajara, Mexico, alleging denial of workers' rights to freedom of association and collective bargaining. The US suspended liquidation of unliquidated entries of goods from the facility, which manufactures latex balloons. Mexico has 10 days to agree to conduct a review and 45 days to complete it if it agrees.
What changed
The USTR, co-chairing with the Secretary of Labor on the Interagency Labor Committee, invoked the USMCA Rapid Response Labor Mechanism after receiving an RRM petition from the union at Latex Occidental. The ILC found sufficient credible evidence of rights denial, prompting the USTR to submit a formal request for Mexico to review the facility and simultaneously suspend liquidation of goods from Latex Occidental.
Importers and exporters dealing in goods from Latex Occidental face suspended customs liquidation, potentially delaying release of shipments and creating cash flow implications. Manufacturers with supply chain exposure to latex balloon production in Mexico should monitor this enforcement action as it may signal intensified USMCA labor enforcement under the current administration.
Archived snapshot
Apr 16, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
United States Seeks Mexico’s Review of Alleged Denial of Workers’ Rights at Latex Occidental, S.A. de C.V.
April
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WASHINGTON – The Office of the United States Trade Representative has invoked the Rapid Response Labor Mechanism (RRM) in the United States-Mexico-Canada Agreement (USMCA) to review whether workers at the Latex Occidental, S.A. de C.V. (Latex Occidental) facility located in the city of Guadalajara in the state of Jalisco, Mexico, are being denied the right to freedom of association and collective bargaining. The United States has suspended liquidation of unliquidated entries of goods from the Latex Occidental facility, which manufactures latex balloons.
Background
The United States Trade Representative and the Secretary of Labor co-chair the Interagency Labor Committee for Monitoring and Enforcement (ILC). On March 16, 2026, the ILC received an RRM petition from the Secretary General of the Sindicato Único de Trabajadores de Látex Occidental, S.A. de C.V. The petition alleges that Latex Occidental is violating workers’ freedom of association and collective bargaining rights by unlawfully changing their union representation and collective bargaining agreement as part of the improper transfer of workers to an affiliated company. The petition also alleges that Latex Occidental dismissed workers because of their union activity. The ILC reviews RRM petitions that it receives, and the accompanying information, within 30 days.
After conducting this review, the ILC determined 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 has submitted a request to Mexico that Mexico review whether workers at Latex Occidental are being denied the right to freedom of association and collective bargaining. Mexico has 10 days to agree to conduct a review and, if it agrees, 45 days from today to complete the review.
A copy of the request for review can be found here.
A copy of the letter to the Secretary of the Treasury can be found here.
Information about previous requests can be found here.
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