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The first labor complaint under the United States-Mexico-Canada Agreement (USMCA) Rapid Response Mechanism was filed by the AFL-CIO and other groups in May. They alleged that workers at an auto parts factory in Matamoros, Mexico, were being denied the right to organize. A few days after that complaint was filed, the United States Trade Representative (USTR) also initiated a request through the Rapid Response Labor Mechanism to review allegations of serious violations of workers’ rights at a facility in Silao, Mexico.

The USMCA, which took effect in July 2020, replaced the North American Free Trade Agreement (NAFTA). NAFTA had also contained mechanisms for settling investor-state disputes and disputes between the parties. However, the Rapid Response Labor Mechanism is a new procedure that establishes a streamlined dispute resolution process allowing an ad hoc tribunal to determine whether a specific facility is in compliance with labor laws.

Join a conversation with attorneys from the U.S. and Mexico to understand the implications for U.S. and Mexican businesses and for Mexican labor unions.

This is a joint program of the National Association of Business Lawyers, Mexico (ANADE) and the International Law Section of the California Lawyers Association.