Client Alert

Forced Labor: Labor and Foreign Trade Implications in Mexico.

Following the publication that established the merchandise whose importation into the country is subjected to regulation by the labor authority (February 2023), The Ministry of Labor and Social Welfare (STPS, by its acronym in Spanish) published on May 18 th , 2023, the mechanism to restrict the importation of merchandise produced by forced or mandatory labor, which includes the procedures that may be initiated by request of any interested party or through an investigation ex-officio by the authority.

Following up the obligations under the Free Trade Agreement between Mexico, United States and Canada (USMCA), parties agreed to implement the necessary measures to restrict the importation of merchandise that are totally or partially produced under forced labor conditions.

Subsequently, in connection with the actions established by the U.S Government, the Ministry of Labor and Social Welfare (STPS, by its acronym in Spanish) published an agreement announcing that the importation of any merchandise produced by forced or mandatory labor

is prohibited, and the compromise to have a procedure to determine the use of forced labor under such circumstances and the guidelines to support such assumption.

Finally, last May, the STPS published the Guideline for the Implementation of the Mechanism to Restrict the importation of merchandise produced by forced or mandatory labor which includes the following: (i) procedure for the integration and reception of requests (requested by interested party or ex officio), (ii) stages and time frame of the procedure, and (iii) criteria to determine the existence of forced or mandatory labor in the production of merchandise.

If the labor authority determines the existence of forced or mandatory labor (including child labor) in the production of reviewed merchandise, it will be informed to the customs authority which may trigger in the prohibition of the importation of such merchandise.

In Cuesta Campos, we can assist you analyzing and determining the risks when importing into Mexico under such circumstances.

If you have any additional questions or comments, please do not hesitate to contact us.

Contact

Alejandro Martínez

amartinez@cuestacampos.com

Alondra Vargas

avargas@cuestacampos.com

THE ABOVE IS PROVIDED AS GENERAL INFORMATION PREPARED BY PROFESSIONALS WITH REGARD TO THE SUBJECT MATTER. THIS DOCUMENT ONLY REFERS TO THE APPLICABLE LAW IN MEXICO. WHILE EVERY EFFORT HAS BEEN MADE TO ENSURE ACCURACY, NO RESPONSIBILITY CAN BE ACCEPTED FOR ERRORS OR OMISSIONS. THE INFORMATION CONTAINED HEREIN SHOULD NOT BE RELIED ON AS LEGAL, ACCOUNTING OR PROFESSIONAL ADVICE BEING RENDERED.