USMCA Forward
Our flagship USMCA Forward report aims to contribute to discussions on strengthening national security, improving supply chain resilience to shocks, and enhancing the region’s competitiveness. It features insights from key experts, including:
• François-Philippe Champagne, Minister of Innovation, Science and Industry – Canada
• Claudia Ruiz Massieu, Senator and Chair the Special Committee for USMCA Implementation – Mexican Senate
• Lance Fritz, Chairman, President, and CEO – Union Pacific Railroad
• Kevin Kolben, Associate Professor and Department Vice Chair – Department of Supply Chain Management, Rutgers Business School
USMCA by the numbers
USMCA simplifies dispute resolutions among partner countries and facilitates quality trade.
•Since USMCA entered into force in July 2020, 25 disputes have been filed (including NAFTA legacy claims) and nine have been resolved.
•The USMCA’s Facility-Specific Rapid-Response Labor Mechanism (RRM) has been triggered eight times with respect to seven automotive facilities in Mexico. All six RRM petitions triggered between 2021 and 2022 were resolved within a matter of weeks or months.
•March 25, 2023 marked day 73 since the USMCA panel on automotive rules of origin was made public and day 100 since it was circulated among the parties, without news or announcements of U.S. compliance.
Dispute settlement updates
•Biotechnology: On March 6, 2023, the United States requested technical talks with Mexico regarding their agricultural biotechnology policies under the USMCA’s Sanitary and Phytosanitary Measures chapter. The talks follow over two years of discussions by U.S. officials with the Mexican government over Mexico’s ban of genetically modified (GM) corn for flour production, as well as the gradual phase-out of GM corn for animal feed and human consumption. On March 8, 2023, Canada also requested talks with Mexico about their restrictions on GM imports.
•Energy: The United States and Canada filed a complaint last July alleging Mexico’s energy policies were discriminatory against foreign investors. Yet, after 252 days, the dispute remains unresolved, and neither country has requested a dispute settlement panel.
•Labor: On March 6, 2023, the United States Trade Representative submitted a request to review whether the Unique Fabricating facility in Querétaro, Mexico, denied the right of free association and collective bargaining to its workers. On March 11, 2023, a claim was submitted by Canadian trade union Unifor along with the Sindicato Independiente Nacional De Trabajadores Y Trabajadoras De La Industria Automotriz (SINTTIA) against the company Fraenkische Industrial Pipes at its facility in Silao, Guanajuato. On March 13, 2023, the Canadian National Administrative Office notified the submitters that the claim was accepted for an initial review.
Our latest event: Bolstering North American supply chains.
The U.S. Bipartisan Infrastructure Bill and the USMCA are driving investments in semiconductors, electric vehicles, critical materials, and clean energy across North America to build more integrated, resilient, and secure supply chains. During our USMCA Forward launch event, leaders from government, industry, civil society, and academia shared their perspectives on maximizing and securing supply chains in North America.
Watch the video | Read the event transcript (PDF)
* USMCA Insightsis a newsletter that covers North American trade from a variety of angles. The newsletter is produced by the Brookings Institutions’ USMCA Initiativewhich works to measure the effectiveness and implementation of the United States-Mexico-Canada Agreement (USMCA) which came into effect in 2020.Something else catch your eye? Email Diego Marroquín: dmarroquin@brookings.edu
