The U.S. Trade Representative (USTR) has formally requested that Mexico conduct a labor rights review at a Mondelz International confectionery plant in Puebla, citing allegations that workers are being denied their rights to freedom of association and collective bargaining.

The request, made under the Rapid Response Labor Mechanism (RRLM) of the United States-Mexico-Canada Agreement (USMCA), marks another high-profile test of the trade pact's labor enforcement tools. According to USTR's announcement, Mexico now has 10 days to agree to the review and 45 days from December 12 to complete it.

In response, the U.S. has also suspended liquidation of imports from the facility. In trade terms, liquidation refers to the final calculation of duties and fees owed on imported goods. By freezing that process, the administration signals its intention to leverage trade pressure in response to ongoing labor concerns.

The case stems from a petition filed last month by a Mexican union, alleging that Mondelz and the incumbent union at the facility have actively suppressed independent union organizing. Specific accusations include threats, firings, discriminatory job reassignments, and denial of access to the workplace for independent union representatives. Workers were reportedly misinformed about their rights, coerced into avoiding certain unions, and penalized for organizing activity.

USTR said the Labor Committee, jointly chaired with the U.S. Department of Labor, determined there is "sufficient, credible evidence" to trigger enforcement action under USMCA. The request for review includes "all actions taken by the company or the incumbent union to intervene in, interfere with, or prevent workers from exercising their union rights," USTR said.

The Puebla facility produces confectionery products, beverages, and other food goods-many of which enter the U.S. market. While the investigation unfolds, trade stakeholders will watch closely how Mexico responds, and whether the labor mechanism results in corrective action.

This marks yet another instance of the Biden administration's aggressive use of trade enforcement tools to uphold labor standards abroad, particularly in key sectors tied to North American supply chains. If the allegations are substantiated, Mondelz could face commercial penalties or required remediation measures under USMCA rules.