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Claudio X. González Center for the US and Mexico | Working Paper

Rethinking the USMCA Labor Chapter Ahead of the 2026 Review

April 27, 2026 | Rolando Javier Salinas García
Rendering of North American Free Trade Agreement Members

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Rolando Javier Salinas García

Rolando Javier Salinas García

Visiting Scholar

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    Rolando Javier Salinas García, “Rethinking the USMCA Labor Chapter Ahead of the 2026 Review,” Rice University’s Baker Institute for Public Policy, April 27, 2026, https://doi.org/10.25613/D6YA-ZJ45.

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USMCANorth AmericaEconomyTrade

Abstract

This paper examines the importance of the Labor Chapter (Chapter 23) within the United States-Mexico-Canada (USMCA) trade agreement, particularly the progress made and areas of opportunity to be considered in the 2026 review and revision of the accord. It emphasizes that the transformation of Mexico’s labor relations system was a specific demand of the U.S. government and American labor organizations and policymakers. It also posits that the central argument for the Labor Chapter is based on the premise that Mexico possesses a labor cost advantage rooted in lower wages, as workforce control remains with corporate unions that limit the autonomy of collective bargaining processes. To correct this imbalance, the Labor Chapter and the Rapid Response Labor Mechanism (RRLM) it created establish provisions that promote and strengthen labor democracy and union freedom in Mexico, providing independent and democratic unions with the tools to assert their labor rights. The analysis concludes that despite the positive but limited results of the Labor Chapter, there is a window of opportunity to implement trilateral regulations that benefit Mexican workers and their demands for better labor conditions under the USMCA framework. In sum, this paper analyzes the labor dynamics between Mexico and the United States from a critical perspective, placing the refinement of the Labor Chapter at the center of the discussion.

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This publication was produced by Rice University’s Baker Institute for Public Policy. It has not been through editorial review. Wherever feasible, the material was reviewed by outside experts prior to release. Any errors or omissions are solely the responsibility of the author(s).

This material may be quoted or reproduced without prior permission, provided appropriate credit is given to the author(s) and Rice University’s Baker Institute for Public Policy. The views expressed herein are those of the individual author(s) and do not necessarily represent the views of Rice University’s Baker Institute for Public Policy.

© 2026 Rice University’s Baker Institute for Public Policy
https://doi.org/10.25613/D6YA-ZJ45
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