IMLEB Report Finds Mexico Failing Labor Obligations Under USMCA Agreement

The Independent Mexico Labor Expert Board (IMLEB) has, for the first time, determined that Mexico has not adhered to its labor commitments as outlined in the United States-Mexico-Canada Agreement (USMCA).

Established by the U.S. Congress under the USMCA, IMLEB is tasked with overseeing Mexico’s enactment and enforcement of critical labor reforms. In a recent report presented to Congress, the Board concluded that "Mexico is not in compliance with its labor obligations under USMCA."

In their conclusion, the Board reflects on the United States' 2019 renegotiation of NAFTA, aiming to significantly reduce the U.S.-Mexico trade deficit and addressing NAFTA's shortcomings. With bipartisan government support, the goal was to establish a fair-trade deal. Such an agreement aimed to prevent American job losses and narrow the wage disparity between U.S. and Mexican workers, a longstanding issue that has led to numerous layoffs in the U.S. and suppressed wages in Mexico.

The Board further comments, “If a measure of success is a reduction of the wage gap between Mexican workers and their North American counterparts, USMCA is a failure.”

The United Auto Workers (UAW) has expressed approval of IMLEB’s findings. With the USMCA scheduled for review in 2026, the UAW is advocating for a comprehensive reform of the existing trade system. The union emphasizes the need for a new wave of trade agreements that prioritize the interests of workers, ensuring equitable representation, enhancing labor standards, and supporting the principle of equal pay across borders.

Currently, under the USMCA, corporate profits have surged, yet American and Mexican workers face stagnant wages and deteriorating labor conditions. The agreement continues to create discord between Mexican and U.S. workers, exacerbating challenges for the working class in both nations. As such, the UAW argues for the USMCA to be either abandoned or significantly revised come 2026.