What Happened: Mexico's proposed labor reform, which is required for the ratification of the United States-Mexico-Canada Agreement (USMCA), falls short of demands Washington made during trade negotiations, Inside U.S. Trade reported March 25.
Why It Matters: A diluted labor reform as part of the USMCA approval process may threaten the deal's eventual passage due to U.S. demands during trade negotiations. The proposed legislation proposed by the ruling National Regeneration Movement and the Social Encounter Party would give employers the ability to continue signing labor contracts with unions without the employees' consent.
Background: The Trump administration is attempting to level the playing field between the United States and Mexico on foreign trade through measures that include increases to workers' protections in Mexico to curb exploitative practices that provide an advantage for Mexican manufacturers.
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