USCIB members met for a briefing with Lewis Karesh, who serves as Assistant U.S. Trade Representative for Labor, to discuss the status of the latest developments regarding the implementation of the labor provisions of the US-Mexico-Canada Agreement (USMCA). The December 10 briefing with Karesh, who was the lead negotiator of the USMCA labor chapter, provided members a detailed overview of the new provisions in the agreement, including the newest feature, the Rapid Response Mechanism, discussing issues related to implementation and next steps to be expected. The meeting was co-organized by the USCIB Corporate Affairs and Labor Committee, as well as the Trade and Investment Committee, and included introductions from the respective Chairs: Laura Rubbo, Disney and Rick Johnston, Citi.
USMCA entered into force July 1 of this year and is currently being implemented. The Labor Chapter is a new provision, establishing a number of new labor requirements for signatory States. Among the enhancements, USMCA prioritizes labor obligations by including them in the core of the agreement and making them fully enforceable, whereas NAFTA labor obligations were contained in a side agreement on labor.
“We appreciated learning more about the USMCA labor chapter elements and their implementation status. Promulgation and effective enforcement of national labor laws that align with international standards should be the norm everywhere, and that certainly should be the case with U.S. trading partners if we are to achieve our shared goal of advancing worker rights globally,” said Gabriella Rigg Herzog, USCIB vice president for corporate responsibility and labor affairs.
The USMCA implementing legislation established an Interagency Labor Committee for Monitoring and Enforcement, co-chaired by USTR and the Department of Labor, to coordinate U.S. implementation of its labor obligations, monitor Mexico’s labor law reforms and enforce USMCA labor provisions where necessary. “Implementation and enforcement of trade agreements is key to how effective their negotiated provisions will be for companies” commented Eva Hampl, USCIB senior director of investment, trade and financial services. “The North American market covered by USMCA is extremely important to our members and their ability to continue to be able to compete in the global market place. Effective implementation of all provisions, including the Labor Chapter, is a top priority.”