Despite Congress passing the United States-Mexico-Canada Agreement in December 2019 and being entered into force in July of 2020, the labor chapter continues to be a convoluted piece of the trade agreement. In an effort to explain the confusing nature of the Rapid Response Labor Mechanism (RRLM), the Chamber has created a series of flow charts that capture the many avenues possible for filing and adjudicating a transnational labor complaint. The full text of the Facility-Specific Rapid Response Labor Mechanism can be found in Chamber 31, Annex 31-A of the USMCA text.
In addition to the RRLM process, special attention should be paid to the selection and formation of Labor Panelists. Panelists have the potential to heavily influence U.S. trade and commerce practices and outcomes.
The USMCA RRLM is a novel tool, still surrounded by many questions. We welcome expert input in our interpretation of the RRLM process.