The United States increased surveillance of labor reform in Mexico, considering the number of cases under the Rapid Response Labor Mechanism (MLRR).
The United States resorted to this mechanism in two cases in 2021, four in 2022, 12 in 2023, 13 in 2024, and six through August 2025.
Surveillance of labor reform
According to the consulting firm Iqom, the acceleration in the number of labor cases filed by the United States under the MLRR reflects both increased monitoring of the implementation of Mexican labor reform and a growing willingness to escalate disputes to labor panels when remediation agreements are not sufficient.
In 2024, 13 of the 37 cases were filed (Atento, RV Fresh Foods, SIG, Minera Tizapa, Volkswagen, Industrias Tecnos, Impro Mexico, Pirelli, Minera Camino Rojo, Bader de Mexico, Odisa, VDO, and Akwel).
By August 2025, six new cases had been added (Tornel, Aludyne, MMA, Amphenol, Superior Industries, and TAMSA).
This Friday, the Ministry of Economy called for caution following the labor ruling against Atento under the USMCA. The Panel determined that the company denied rights at its Pachuca I and Interplaza facilities and that its remedial actions were insufficient.
The Mexican government rejected the Panel’s determination, arguing that the STPS acted in accordance with the law and international commitments. It also pointed out that the Panel did not consider all the arguments, introduced new ones, and omitted key elements of the case.
MLRR
The USMCA’s rapid response labor mechanism was created at the urging of US Democrats and labor groups during the final negotiations with the Donald Trump administration. It allows for expedited reviews to be requested in factories where violations of freedom of association or collective bargaining are suspected.
An independent panel evaluates each case and may impose sanctions. For example, it can suspend duty-free treatment or prevent the entry of goods if repeated non-compliance is confirmed.
The mechanism applies to priority sectors: manufacturing, services, and mining. Notable products include aerospace components, automobiles and auto parts, cosmetics, steel, aluminum, glass, ceramics, plastics, forgings, cement, and industrial baked goods.
Annex 23 A requires Mexico to protect in its legislation the right of workers to organize, form unions, and participate in collective bargaining. This ensures effective defense of labor rights throughout the country. The Mexican government has implied that the United States is abusing this resource.