High Stakes for 2026: USMCA Renegotiation Looms as Mexico Bolsters Labor Reforms

With the 2026 review of the United States–Mexico–Canada Agreement (USMCA) approaching, the intersection of trade and labor rights is coming into sharper focus. Particularly, Rapid Response Labor Mechanism (RRLM) will be among the most contentious issues at the negotiating table.

HR Policy Global’s Take: A recent call center case at Ateno has exposed deep tensions between Mexico and the US, as RRLM was created to largely apply to Mexico, leaving U.S. labor disputes outside its scope. While the mechanism has delivered precedents on union rights in Mexico, it continues to raise questions over interpretation, jurisdiction, and the balance between international oversight and national sovereignty. Simone Jackson, Acting Minister Counselor from U.S. Embassy, will join us at our Mexico City meeting on October 1^st to share more. Sign up here.

Renegotiation on high stakes: US Demands for more intrusive oversight—including onsite inspections, wage comparisons across borders, and tighter export conditions—could resurface during renegotiations. However, Mexico’s bargaining strength will depend heavily on the progress and credibility of its internal reforms. Funding gaps for labor institutions, persistent wage disparities, and the lack of new unions remain challenges. Without clear improvements, Mexico risks facing greater external pressure in the review process.

Mexico Reinforce the labor reform: Against this backdrop, the Ministry of Labor and Social Security (STPS) has rolled out a new digital tool aimed at reinforcing domestic enforcement. The Workplace Complaints and Accidents System (SIQAL), a toll-free online platform, allows workers across Mexico to report labor rights violations or workplace accidents directly. Authorities say the system will enable quicker inspections, prevent risks, and ensure anonymity and data protection for whistleblowers.

In President Claudia Sheinbaum’s first year, labor inspectors carried out more than 27,000 workplace visits, including extraordinary inspections into possible employer interference in union activity. The STPS says SIQAL will build on that momentum, ensuring workers have direct channels to raise concerns.

The Path Forward: 
  The path to 2026 is shaping up to be a test of how well Mexico can balance domestic labor reform with international expectations. Stronger internal enforcement, such as SIQAL, may give Mexico more leverage. But wage disparities, institutional weaknesses, and ongoing RRLM cases mean the stakes for the next USMCA review remain exceptionally high.