Effective July 1, 2020, the United States–Mexico–Canada Agreement (USMCA) is a trade pact that modernizes and replaces NAFTA, establishing updated rules for commerce, labor, and environmental standards across North America.

The USMCA Labor Provisions lists four specific due diligence obligations that a company must comply with:

• The Secretariat of Labor and Social Welfare (STPS) conducts regular labor inspections to ensure compliance with labor laws, including the prohibition of forced labor.
• Under the USMCA, Mexico is required to report on its efforts to combat forced labor, providing transparency and accountability in its enforcement actions.
• Mexico works with the UN and other international organizations to address human trafficking and forced labor, leveraging global expertise and resources to strengthen its domestic efforts.
• Regular audits and assessments of employer practiced are conducted to ensure ongoing compliance with labor laws.