The U.S. law implementing the USMCA allocated $180 million to the Department of Labor (DOL) for technical assistance programs to support labor justice system reforms in Mexico.
That budget includes grants to support worker-centered capacity building, combat forced labor and child labor, and reduce workplace discrimination in Mexico.
By the end of 2023, DOL had awarded that $180 million.
In 2023, USTR continued to work closely with Mexican trade and labor officials to ensure effective implementation of Mexican constitutional and legislative reforms, which require the creation of new labor courts and reform Mexico’s labor justice administration system.
Also during the past year, the U.S. government activated actions under the USMCA Rapid Response Mechanism 13 times and negotiated four remedial courses.
The United States launched the first dispute settlement panel under the mechanism and worked collaboratively with Mexico to successfully resolve multiple cases.
From USTR’s perspective, these actions demonstrate the U.S. commitment to enforcing the USMCA and show that the mechanism is working, as intended, to achieve quick and meaningful victories for workers on the ground and promote a race to the top.
Labor Justice System
To ensure adequate oversight and resources for enforcement of USMCA labor obligations, the United States-Mexico-Canada Agreement Implementation Act (19 U.S.C. § 4501-4732 (2020)) appropriates $30 million over four years to each of USTR and DOL for enforcement and provides that DOL will post up to five Labor Attachés to the U.S. Embassy and U.S. consulates in Mexico.
DOL posted the fifth Labor Attaché in 2023, and all work closely with the USTR Senior Trade Representative, as well as U.S. State Department officials at the U.S. Embassy in Mexico City.
Labor Reform
DOL appointed the fifth Labor Attaché in 2023, and all work closely with the USTR Senior Trade Representative, as well as U.S. Department of State officials at the U.S. Embassy in Mexico City.
The resources allocated also supported the creation and operation of an Interagency Labor Monitoring and Enforcement Committee (the Committee) to coordinate the monitoring and enforcement of the labor provisions of the T-MEC, with a particular focus on Mexico’s historic labor reform process.
The Committee, co-chaired by the U.S. Trade Representative and the U.S. Secretary of Labor, was established in 2020 and met periodically throughout 2023 to review labor rights issues in Mexico.
Pursuant to the USMCA Implementation Act, the Committee prepared reports every 180 days and transmitted them to the Senate Finance Committee and the House Ways and Means Committee.
