USMCA's Labor Dispute Tool Raises Hurdles For Mexican Cos.

Law360 (June 26, 2020, 2:51 PM EDT) -- The U.S.-Mexico-Canada Agreement will take effect on July 1. It comes with an entirely new approach to labor dispute settlement — the facility-specific rapid response labor mechanism, or RRLM — under which an ad hoc international dispute settlement panel can make a determination as to whether a specific facility is in compliance with Mexico's new labor reforms.

The focus of the inquiry is far more specific than traditional labor enforcement mechanisms as it looks to see if workers at a specific facility in question were denied rights, as opposed to whether Mexico, as a country, breached the USMCA.

Under the RRLM's...

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