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U.S. Launches Labor Probe at Mexican Packaging Maker, Reaches Deal at Ammunition Factory

The United States has initiated a labor rights investigation into Madobox S., a commercial packaging manufacturer based in Uruapan, Michoacán, over allegations that workers were denied freedom of association and collective bargaining rights. The U.S. Trade Representative suspended liquidation of customs entries for goods produced at the facility. This action delays final duty assessments on affected imports without blocking entry. A Mexican labor union affiliated with COCENA filed the complaint. The union alleges the company arranged a collective bargaining agreement without worker input, coerced employees about their rights, and terminated workers in retaliation for union organizing. Madobox manufactures corrugated cardboard packaging for agricultural exports including avocados, mangoes, berries and tomatoes. The case invokes the USMCA's Rapid Response Labor Mechanism, giving Mexico 45 days to respond. Separately, the U.S. and Mexico reached a memorandum of understanding addressing labor concerns at Industrias Tecnos S.A., an ammunition manufacturer in Cuernavaca.