Amid U.S. President Trump's announcement of sweeping auto tariffs targeting non-American content in vehicles, CUSMA's provisions ensure that auto parts imported under the agreement remain tariff‐free. This measure helps shield the automotive sector from disruptive tariff impacts, indirectly protecting workers and industrial stability.

Global Affairs Canada officials, including Minister Ng, convened the CUSMA Free Trade Commission meeting in Cancún from July 5-7, 2023. The meeting focused on enhancing North American trade inclusiveness, strengthening supply chains through friendshoring, and upholding high labor standards that benefit workers, women, Indigenous Peoples, and other underrepresented groups.

The U.S. Department of Labor released a labor rights report under the United States-Mexico-Canada Agreement (USMCA), which scrutinizes the agreement’s labor provisions and raises concerns over persistent worker exploitation and inadequate protections, particularly highlighted by references to issues such as 'sweat & toil'.

Following labor complaints initiated by the U.S. Trade Representative in May and June 2021 over allegations that workers at Mexican factories were denied their right to organize, the disputes were resolved through negotiations under the USMCA's Facility-Specific Rapid Response Labor Mechanism. This outcome underscores the Agreement’s role in enforcing worker rights and labor standards.

The USMCA labor chapter introduces robust and enforceable measures to secure labor rights across member nations—including a prohibition on forced labor, protections for migrant workers, and guarantees for collective bargaining. Historic labor reforms in Mexico on May 1, 2019, exemplify these commitments.