If your company is importing goods duty free from Mexico thanks to the United States-Mexico-Canada Agreement (USMCA), you need to ensure your vendors are following Mexican labor laws or you could find yourself staring at a big bill for overdue duties.
The USMCA went into effect on July 1, replacing the North American Free Trade Agreement. NAFTA ushered in a new era for North American trade, and the USMCA looks to build on that momentum, mostly keeping NAFTA’s tariff structure, while addressing aspects of the economy that weren’t big priorities in 1994, like e-commerce and digital trade.
Some of the updates in the new agreement got a lot of media play, like new rules of origin requirements and the sunset clause. There’s another important change, though, that’s less talked about: the Rapid Response Labor Mechanism. It may have garnered less attention than some of the other policies, but it matters just as much to importers and exporters.