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1 1 (January 8, 2021)

handle is hein.crs/govebpv0001 and id is 1 raw text is: $ Updated January 8, 2021 USM CA: Labor Provisions The U.S.-Mexico-Canada Agreement (USMCA) entered into force on July 1, 2020, replacing the NorthAmerican Free Trade Agreement(NAFTA). USMCA establishes new and updated provisions on the protection of worker rights and enforcement of labor commitments. Congress approved implementing legislation for USMCA (H.R. 5430) on December 19, 2019. President Trump signed the legislation into law on January 29, 2020 (P.L. 116-113). The protection of worker rights and the enforceability of laborprovisions were a major congressional concern throughout the USMCA negotiations andremained an issue after the three countries concluded the agreement in September 2018. In response, the U.S. Trade Representative(USTR) and some Members of the House of Representatives negotiated changes to USMCA; mostof the changes modified the labor provisions. USTR then negotiated the proposed amendments with Canada and Mexico. USMCA's new labor provisions, compared to recent U.S. free trade agreements (FTAs), may be considered as a template for future FTAs. Historically, U.S. labor advocates have expressedconcern over FTAs with developing countries, due to those countries' relatively lower wages and labor standards, and have sought stronger labor provisions in U.S. FTAs. Proponents ofFTAs such as NAFTA argue that they help improve standards, build capacity to support worker rights in developing countries, and enhance economic development and growth. In the long run, FTAs help reallocate resources to more efficient industries, support higher-payingU.S.jobs in some sectors, and, according to most economists, have a net positive effect on the U.S. economy. At the same time, trade liberalization can have adjustment costs andjob losses in otherindustries and regions of the country. The U.S. International Trade Commission estimates that, ifimplemented, the collective bargaining commitments made by Mexico in USMCA would increase Mexican unionwages andhelp reduce wage disparity. NAF TA NAFTA's laborprovisions were in a side agreementcalled the North American Agreement on Labor Cooperation (NAALC), which contained 11 guiding principles pertaining to worker rights andprovisions on technical assistance, capacity building, and separate dispute procedures. A goalof the agreement was to resolve is sues in a cooperative manner through ministerial consultations in numerous areas, including freedomof as sociation and collective bargaining. Full dispute resolutionprocedures applied to a country's persistentpattem of failure in trade-related cases to enforceits own laws regarding child labor, minimum wage, and occupational safety and health. USMCA Provisions USMCA includes components of more recent U.S. FTAs that strengthen NAFTA provisions and provide recourse to the s ame dispute settlement mechanismas other p arts of the agreement. It requires parties to: Adopt and maintain in statutes and regulation, and practices, worker rights as stated in the 1998 ILD Declaration on Fundamental Principles and Rights at Work, in addition to acceptable conditions of work with respect to minimum wages,hours ofwork, and occupational safety andhealth. Not waive or otherwise derogate fromits statues or regulations. Not fail to effectively enforce labor laws through a sus tained or recurring course of action or inaction in a manner affecting trade or investment between parties. Promote compliance with labor laws through appropriate government action, such as appointing and training inspectors or monitoring compliance and investigating suspected violations. For the first time in a U.S. FTA, the USMCA prohibits imports of goods made by forced labor, and adds new commitments related to violence against workers, migrant worker protections, and workplace discrimination. It maintains standardU.S. FTA language thateachparty retains the right to exercise reasonable enforcement discretion and to make bona fide decisions onthe allocation of enforcement resources. Additionally, it specifies that the labor chapter shall not be construed to empower anotherparty to undertake labor law enforcement in the territory of anotherparty. USMCA Protocol of Amendment: Key Labor Changes Some Members of Congress criticized the original text of the USMCA chapters on labor and dispute settlement (DS) and negotiated with the Administration to amend the agreement. Key changes include the following: Prevention of panel blocking in dispute settlement. Ensures theformation of a panel in dispute cases where a party refuses to participate in the selection of panelists. In a Manner Affecting Trade and Investment. Shifts the burden of proof by stating that an alleged violation affects trade and investment, unless otherwise demonstrated. Rapid Response Mechanism. Adds a new rapid response mechanism to provide for an independent panel investigation of denial of certain labor rights at covered facilities, as opposed to a government inspection. Mexico's Labor Reform Monitoring. USMCA implementing legislation creates a new interagency committee, labor attaches, and reporting requirements to Congress on Mexico's implementation of labor reforms. New or amended provisions on Rules of Procedure for DS, forced labor, and violence against workers.

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