A Mexican news outlet, Reforma, interviews Adrian Vázquez, VTZ managing partner, regarding USMCA's entry into force and the Labor Chapter.

USMCA and the Rule of Law

The US-Mexico-Canada Agreement (USMCA) replaced NAFTA on July 1st, 2020.  USMCA modernizes trade and investment rules between these three countries and, thus, seeks to promote economic development in the region. Notwithstanding, Mexican attorneys have expressed that Mexico must uphold the rule of law established in the USMCA provisions to reap the benefits of USMCA.


Rule of Law is Key to USMCA

On the day USMCA entered into force, July 1st, 2020, Adrian Vázquez was quoted in an article of  Reforma, a major newspaper in Mexico. Our managing partner emphasized that Mexico must have the will to respect the rule of law established in the USMCA, and he expressed that the private sector also plays an important role since it must demand compliance of trade and investment provisions. 

USMCA Labor and Trade

The USMCA Labor Chapter and the dispute settlement mechanisms related to labor provisions have caught the attention of the Mexican media. When discussing the Trade Policy Agenda 2020 before the US Senate on  June 17, 2020, Mr. Lighthizer noted that as of July 1, the USTR will meet with the corresponding committees to discuss the possible use of USMCA's ​​enforcement mechanisms in environment and labor matters. 

Mexican news outlets have reported that the possible first labor disputes could relate to child labor and forced labor issues, particularly in the agricultural sector; however, the freedom of association (i.e. unions) and effective collective bargaining are matters that may trigger the rapid response labor mechanism.

Anonymous Witnesses in USMCA Labor Disputes 

On July 6,  2020, Adrian Vázquez was quoted in an article of Reforma on the labor dispute settlement mechanisms in the USMCA, particularly regarding "anonymous witnesses". Our managing partner expressed that "[I]f this tool is used by American unions in order to submit an anonymous testimony, sending any person as a witness,  that is a danger and not whether if they are or not anonymous."