Mexico Wins First Rapid Response Labor Mechanism Panel
An international panel ruling on whether the U.S. had the right to punish a zinc mine in San Martín over labor violations agreed with Mexico that the violations happened before USMCA -- or T-MEC, as Mexico calls it -- came into force, and so the panel ruled it didn't have jurisdiction.
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It was the first rapid response labor mechanism case that went to a panel, because Mexico and the U.S. didn't agree on remediation.
Mexico said in a news release that the ruling is important because it set a precedent that trade agreements are not retroactive.
"For Mexico, it is essential to avoid opening up this possibility both in labor disputes and in other commercial disputes," an informal translation of the release said.
Mexico's Economy Secretariat acknowledged that the mine's owner, Grupo México, has violated workers' rights to join a union and collectively bargain "throughout the 16 years of conflict," but said that Mexican authorities were already addressing the issue. The employer had been ordered to pay back wages for striking workers, for instance.
The Mexican government said the rapid response labor mechanism has been a powerful tool, and has helped "to overcome the resistance against democracy and union freedom that still prevails in some workplaces.
"However, to maintain its effectiveness and avoid wear and tear, it is crucial that its application is reasonable, proportional and in good faith."
The Mexican government said that, during the 2026 sunset review, it will seek to correct what it called the asymmetrical design of the mechanism, so that Mexico can use it "to defend the rights of migrant workers in the United States and Canada." Currently, Mexico can only use the mechanism to address U.S. firms' violations of workers' right to participate in a union if there has already been an order from the National Labor Relations Board, and Mexico believes it hasn't solved the problem. There have been no instances of Mexican use of the mechanism.
The Office of the U.S. Trade Representative didn't respond to a request for comment by our deadline.