U.S. will impose tariffs if there’s a labor failure
MEXICO – Within the modifications of the new United States-Mexico-Canada Agreement (USMCA), there is the “Facility-Specific Rapid Response Labor Mechanism”, which allows the United States to suspend the final determination of the payment of tariffs if it considers that there is a denial of labor rights.
According to the firm of labor lawyers, EC Legal Rubio Villegas, this is a mechanism that will apply whenever a country considers that the workers of a company are denied the right to free association and collective negotiation.
“If a country has reasons to believe that there is a denial of rights in a company, it will request that the other country carry out its own review; if the defendant determines that it is indeed incurred, it will try to repair it within the next 45 days,” the firm explained.
EC Legal added that with the request made by a country, tariff penalties can be imposed on products exported by the company that allegedly is violating the rights of free association and collective bargaining until both parties agree that there is no inconsistency; or a panel of specialists determines that there is no said violation.