As part of the industrial policy in the USMCA, the United States is promoting the Rapid Response Labor Mechanism (MLRR), according to Mexican consulting firm Ansley.
The RRM allows the United States to address complaints about denial of labor rights at specific facilities, conduct rapid verifications, and, if necessary, impose measures or sanctions.
Industrial policy in the USMCA
The U.S. Trade Representative (USTR) acknowledged progress resulting from the RRM but maintains that enforcement remains insufficient and uneven, with negative impacts on U.S. competitiveness.
This position was stated by USTR head Jamieson Greer in a report he presented to the House Ways and Means Committee and the Senate Finance Committee on December 16 and 17, respectively, on the functioning of the USMCA prior to the joint review on July 1, 2026.
In his message, according to Ansley, Greer hinted that the MLRR has become an instrument of industrial and trade policy, likely to intensify as a result of the review.
In consultations conducted by the USTR, comments on the MLRR reflected differing positions between the business sector and labor organizations. While industry associations are calling for greater procedural certainty, transparency, and participation, unions are proposing to expand the scope of the mechanism and the rights covered.
Labor regulation
The USMCA’s Labor Value Content criteria require vehicle manufacturers to certify that a percentage of the value of the car comes from plants in Treaty countries that pay their workers at least $16 per hour.
In addition, the new Labor Content Rule sets specific minimum percentages for passenger vehicles, light trucks, and heavy trucks. Such content must originate in North American plants that meet the established wage threshold.
In this way, the rule seeks to ensure that U.S. producers and workers compete on equal terms. At the same time, it encourages investment in new vehicles and auto parts within the United States.
In the consultation, the Mexican Automotive Industry Association (AMIA) requested that Mexico be allowed to file labor claims in the United States and Canada within the framework of the USMCA, with the aim of expanding the use of the labor mechanisms provided for.
Likewise, AMIA pointed out that the automotive sector has been the main target of the Rapid Response Labor Mechanism in Mexico. In this regard, it argued that experience has shown its effectiveness in promoting compliance with USMCA labor commitments.
“However, we also believe that balance is needed in its application: for example, it is essential that the LRRA be truly trilateral, in the sense that Mexico can also file complaints in the United States and Canada, and that its implementation be carried out in an equitable manner,” said Rogelio Garza, executive president of AMIA.