Constitutional Law Commons^™

Is Usmca Good For Mexican Labor? A Preliminary Analysis Of Usmca And Labor Market Outcomes In Mexico, Diego Marroquín Bitar

Brooklyn Journal of International Law

The United States-Mexico-Canada Agreement (USMCA) introduced significant labor provisions aimed at bolstering labor rights and promoting union democracy, representing a departure from its predecessor, the North America Free Trade Agreement (NAFTA). This paper examines USMCA’s potential benefits and limitations on labor, arguing that the trade agreement’s effectiveness in improving labor conditions in Mexico may be limited. By primarily benefitting export-oriented firms, USMCA leaves a significant portion of Mexico’s workforce untouched. Moreover, USMCA's new wage requirements, intended to raise labor standards, may paradoxically increase production costs for formal firms, potentially lowering overall productivity. This paper underscores the persistent formal-informal labor divide …