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New USMCA Labor Obligations Present Risks for Covered Employers


Wednesday, April 28, 2021
In effect since July 1, 2020, the United-States-Mexico-Canada Agreement (“USMCA”) replaced the North American Free Trade Agreement (“NAFTA”).  Although the worldwide COVID-19 pandemic largely overshadowed the effective date of this new international agreement, its new labor provisions should not go overlooked.  While the USMCA retains most of the NAFTA commitments, it revamped the old agreement in key areas including labor.  Unlike NAFTA that included some labor commitments in a side agreement, the USMCA provides labor standards in the core text of the agreement (Chapter 23, Labor), making them fully enforceable.
The commitments on labor are not only relevant to manufacturers located in one or more of the USMCA countries but also companies that rely on these goods as inputs into their supply chains.  This article provides a broad overview of the labor standards contained in Chapter 23 of the USMCA with a particular emphas ....

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New Labor Obligations Contained In USMCA Present Risks for Covered Employers | Sheppard Mullin Richter & Hampton LLP


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In effect since July 1, 2020, the United-States-Mexico-Canada Agreement (“USMCA”) replaced the North American Free Trade Agreement (“NAFTA”). Although the worldwide COVID-19 pandemic largely overshadowed the effective date of this new international agreement, its new labor provisions should not go overlooked. While the USMCA retains most of the NAFTA commitments, it revamped the old agreement in key areas including labor. Unlike NAFTA that included some labor commitments in a side agreement, the USMCA provides labor standards in the core text of the agreement (Chapter 23, Labor), making them fully enforceable.
The commitments on labor are not only relevant to manufacturers located in one or more of the USMCA countries, but also companies that rely on these goods as inputs into their supply chains. This article provides a broad overview of the labor standards contained in Chapter 23 of the USMCA with a ....

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Looking Ahead: Enforcement of the USMCA Labor Provisions | All Alerts & Newsletters


Dec.18.2020
The United States-Mexico-Canada Agreement (USMCA) came into force on July 1, 2020. Included in the USMCA are stronger labor provisions Congressional Democrats demanded, with the support of the Trump Administration, that were approved on a bipartisan basis during consideration of the USMCA implementing legislation in late 2019. The stronger labor provisions helped secure the support of key labor groups for the USMCA. Together with overall support from business groups, the USMCA set a framework for more extensive labor commitments in U.S. trade agreements. This is expected to lead to more aggressive enforcement.
While no case has been brought on the labor provisions of the USMCA so far, ....

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