MEXICO CITY, July 3 (Reuters) - The U.S. wants Mexico's government to build strong institutions to protect worker rights as companies aiming to avoid supply chain disruptions in far-off production spots bring more jobs to the country, a top U.S. labor official told Reuters. Mexico has begun to benefit from "nearshoring" in which companies seek to move production closer to the U.S. market while maintaining competitive costs. "Hopefully that will ensure that Mexico doesn't become a dumping ground for companies looking for cheap labor and lax regulations," said Thea Lee, U.S. Deputy Undersecretary for International Labor Affairs who polices USMCA compliance. Mexico has made progress improving labor courts, resolving worker complaints faster and easing union organization, but needs to do more, Lee said. Since 2020, several U.S. labor complaints in Mexico have paved the way for independent unions to land pay raises and even expand.

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Persons: Thea Lee, Lee, Cristina Ramirez, Ramirez, Daina Beth Solomon, David Gregorio Our Organizations: MEXICO CITY, Reuters, International Labor Affairs, Goodyear, Grupo Mexico, VU Manufacturing, La Liga, VU, Thomson Locations: MEXICO, U.S, Mexico, Canada, Piedras Negras