How the Labour Value Disconnect in US CUSMA Implementing Legislation Plays Out

July 17, 2020

The US implementing legislation for the Canada-United States-Mexico Agreement (CUSMA) provides for Uniform Regulations as required by its Article 5.16 regarding the “interpretation, application, and administration” of the rules of origin (ROO). However, the legislation provides separately for the development of regulations and procedures for the labour value content (LVC) requirement of the CUSMA automotive ROO, which include Donald Trump’s $16 an hour wages for Mexican factories.