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Mexico Misses USMCA Deadline for Labor Reforms

Posted January 04, 2019

Under Economic Issues, International Trade Issues

(Isabelle Hoagland – Inside U.S. Trade)

The Mexican Congress failed to meet a Jan. 1 deadline to pass legislation to establish labor reforms called for in the U.S.-Mexico-Canada Agreement, with a bill introduced last month in the Chamber of Deputies unlikely to be addressed until February.

An annex to USMCA’s labor chapter says Mexico must adopt legislation establishing, among other things, “(i) an independent entity for conciliation and union collective bargaining agreement registration and (ii) independent Labor Courts for the adjudication of labor disputes.” The deal said the bill had to be passed by Jan. 1, adding that “entry into force of the agreement may be delayed until such legislation becomes effective.”

But the draft legislation, obtained by Inside U.S. Trade, is dated Dec. 22 and was introduced by the MORENA party in the Chamber of Deputies on Dec. 30. The next regular session of the Chamber is set for February. While a special session will be held in mid-January, Mexican media reports say the labor law is unlikely to come up, with lawmakers set to debate national security legislation. Click here to read more (subscription required).