The United States recently ratified the United States-Mexico-Canada Agreement (USMCA), which is intended to replace the North American Free Trade Agreement (NAFTA). The USMCA enjoys broad bipartisan support in the United States, passing 89-10 in the Senate and 385-41 in the House of Representatives. Mexico ratified the trade pact on Dec. 12, 2019, and Canada will likely ratify the agreement this year, although the timing remains uncertain. The USMCA will then come into force “on the first day of the third month” following Canadian ratification. In this article, we examine the significant changes to labor provisions in the USMCA as compared to those in NAFTA. We also highlight changes made following the version negotiated in 2018, reflecting alterations pushed largely by congressional Democrats and labor unions.

From NAFTA to USMCA: New Labor Rules

The Office of the U.S. Trade Representative describes the USMCA as “modernizing” NAFTA, which has controlled trade among the three nations for more than 25 years. In doing so, the USMCA “includes components of more recent U.S. [free trade agreements].” Among other elements, it expands labor rights and enhances dispute resolution mechanisms.