United States Seeks Mexico’s Review of Alleged Denial of Workers’ Rights at Carolina Performance Fabrics

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 Carolina Performance Fabrics, S.A. de C.V. (Carolina), located in the state of Guanajuato, 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 Carolina facility, which manufactures specialized, high-performance textiles for the automotive industry.

The United States Trade Representative (Trade Representative) and the Secretary of Labor co-chair the Interagency Labor Committee for Monitoring and Enforcement (ILC). On September 10, 2026, the ILC received an RRM petition from a Mexican union affiliated with the Confederación Central Nacional (COCENA). The petition alleges that Carolina has violated workers’ rights by interfering in union activity and retaliating against workers because of their attempts to organize for COCENA, including through harassment, threats, and unlawful dismissals. 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 under the USMCA. As a result, the Trade Representative has submitted a request to Mexico under Annex 31-A of the USMCA that Mexico review whether workers at Carolina are being denied the right to freedom of association and collective bargaining. The Trade Representative has also directed the Secretary of the Treasury to suspend liquidation of unliquidated entries of goods from Carolina.

Mexico has 10 days to agree to conduct a review and, if it agrees, 45 days from today to complete the review.