USTR Responds to Mexico on USMCA Rapid Response Mechanism

WASHINGTON - United States Trade Representative Katherine Tai sent the following letter yesterday regarding the United States-Mexico-Canada Agreement (USMCA) Rapid Response Labor Mechanism (RRM) to Marcelo Ebrard, Mexico's Secretary of Economy:

January 16, 2025

Secretary Marcelo Ebrard
Secretariat of Economy
Mexico City, Mexico

Dear Secretary Ebrard:

I write in response to your Embassy's December 23, 2024 communication regarding the United States-Mexico-Canada Agreement (USMCA) Rapid Response Labor Mechanism (RRM). As you know, this mechanism is a ground breaking, first of its kind trade tool that we have deployed together to further our shared interests in the implementation of Mexico's labor reform and the protection of workers' rights. The Biden Harris Administration has prioritized the use of this mechanism as a key piece of our worker centered trade policy and critical component of our trade relationship.

Our governments have reached considerable and historic results through our collaborative response to many RRM cases, strengthening our trade partnership and protecting workers in both of our countries. Over 42,000 workers in Mexico have directly benefited from RRM cases. Mexico has held free and fair union elections, unions have negotiated new stronger collective bargaining agreements, wrongly dismissed workers have been reinstated, and workers have been paid over 6 million USD in backpay and benefits. Never before have trade tools brought such real and concrete gains for workers, in such a short time. We commend Mexico on the steps it has taken to distinguish itself from those countries that would violate workers' rights to gain an artificial economic advantage.

While the cooperation we have enjoyed under the mechanism has been the cornerstone of our success to date, in cases where issues have not been fully remediated, the U.S. has taken and will continue to take the issues to arbitral panels. This step is critically important, as it brings additional, independent review to the cases and paves the way for sanctions when facilities fail to remediate violations of workers' rights.

But more is still needed to realize the potential of Mexico's labor reform and to ensure that freedom of association and collective bargaining rights are fully protected. As my tenure as United States Trade Representative comes to a close, I want to encourage you not only to continue to cooperate with USTR on the implementation of the RRM, but to take seriously the critical importance of robust implementation and enforcement of the labor reform, including fully funded labor institutions to ensure the protection of workers' rights. These issues are fundamental to our trade relationship and central to ensuring that relationship brings shared prosperity and gains for people in both of our countries.

Sincerely,

Ambassador Katherine Tai
United States Trade Representative

cc:
Secretary Marath Baruch Bolaños López, Secretariat of Labor and Social Welfare

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