Manufacturing in Mexico accounts for 17% of GDP. [91] However, Mexican President Andrés Manuel Lupepez Obrador believes that this trade agreement will be a clear positive for the Mexican economy through increased foreign investment, job creation and the expansion of trade. [92] USMCA Schedule 23-A calls on Mexico to pass legislation that improves the ability of unions to negotiate. [44] The specific standards that Mexico must meet are set out in Convention 98 of the International Labour Organization on freedom of association and collective bargaining. The government of Mexican President Andrés Manuel Lépez Obrador passed a law in late 2018 that respects these international standards. In addition, there is a provision that the agreement itself must be reviewed every six years by the three nations, with a 16-year forfeiture clause. The contract may be renewed for a period of 16 years during the six-year review period. [51] The introduction of the Sunset clause gives more control in the organization of the future of the USMCA in the hands of national governments. However, there is concern that this could lead to greater uncertainty. Sectors such as automotive require significant investment in cross-border supply chains. [52] Given the dominant position of the U.S. consumer market, it is likely that this will put pressure on companies to establish more production in the United States, with a higher probability of higher production costs for these vehicles. [53] On December 12, 2019, the Mexican Senate passed the revised treaty by 107-1 votes.

[89] On April 3, 2020, Mexico announced its readiness to implement the agreement and joined Canada,[15] although it requested that its auto industry have additional time to comply with the agreement. [90] In some areas, the USMCA is a judicious modernization of NAFTA, while in others, the agreement has become much more protectionist. On December 9, 2019, Fox News reported that negotiators from the three countries reached an agreement on implementation, paving the way for a final agreement within 24 hours and ratification by all three parties before the end of the year. Mexico has agreed to impose a minimum wage of $16 per hour for Mexican auto workers by a “neutral” third party.