Liquidation Suspended for Parts From Draxton Foundry in Irapuato, Mexico

An automotive parts casting foundry, part of a Mexican industrial conglomerate known as Grupo Industrial Saltillo, is the subject of the latest rapid response labor complaint from the U.S., as the administration argues that the approximately 500 workers at the Draxton foundry in Irapuato, Guanajuato, were harassed and intimidated when they tried to organize a new union. The Office of the U.S. Trade Representative also says the workers had to vote on a contract in 2022 without seeing it, and they still don't have a copy of the contract.

Liquidation of imports from the foundry will be suspended while Mexico investigates whether there may have been a denial of labor rights. The U.S. did not receive a formal complaint from union officials, it self-initiated the complaint, only the second time it has done so under the USMCA rapid response mechanism.

“This second self-initiated request under the USMCA shows that the Biden-Harris Administration is laser-focused on using trade to empower workers," USTR Katherine Tai said in a press release issued May 31. "The RRM is an effective enforcement tool to ensure that workers at the Draxton facility can freely exercise their rights without intimidation, [harassment], or the fear of retribution. We look forward to working with the Government of Mexico to promptly address these concerns.”

The Mexican government did not issue a press release about the complaint.

The foundry casts brake discs, clutch plates, flywheels, bearing caps, differential cases, brackets, calipers, hubs and knuckles.