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13 Jul 2020

Mexico, USA & Canada: New free trade agreement sparks debate surrounding labour provisions

On July 1, 2020, the United States-Mexico-Canada Agreement (USMCA) went into effect, replacing the North American Free Trade Agreement (NAFTA).  The free trade agreement recognises the deeply intertwined nature of the three economies, including the fluctuations of migrant workers across the region and the interdependence regarding supply chains. 

There continues to be considerable debate in all three countries about whether the labour provisions of the new agreement will be more enforceable than those of NAFTA.  The renegotiated Labour Chapter modifies the labour rights included in the agreement, explicitly adding protection for workers against violence, and includes a ban on forced labour. It also opens the dispute resolution mechanism to cases on freedom of association and the right to bargain collectively, which now qualify for fines and trade sanctions.

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