USMCA delivered concrete wins for workers, but gains diminished in recent years

A new report by American Economic Liberties Project’s Rethink Trade finds that the Rapid Response Mechanism (RRM) established in the 2020 United States-Mexico-Canada Agreement (USMCA) delivered concrete wins for tens of thousands of workers in its initial years, but that gains have diminished in recent years. 

The group argues that the mechanism, which allows for facility-specific trade sanctions when companies violate labor rights, must be strengthened in the USMCA’s mandatory six-year review.

The report is the first comprehensive analysis of the RRM, a groundbreaking enforcement tool that has global significance because it ties trade privileges to labor rights at specific facilities. Lawmakers and labor leaders say the review is a critical chance to ensure the mechanism lives up to its promise.

Rep. Rosa DeLauro, who fought for the RRM’s inclusion, said the review offers “a critical opportunity to revisit and revamp” the system so it can accomplish its intended goals. Rep. Linda Sánchez (D-CA) called civil society engagement essential and urged a “comprehensive review” to address gaps.

Labor leaders praised the RRM’s speed and targeted enforcement but warned it has not yet transformed conditions for Mexican workers or protected U.S. jobs from downward pressure.

Between July 2020 and June 2025, the U.S. initiated 37 RRM cases covering industries from mining and electronics to food and auto manufacturing. Nearly two-thirds of resolved cases resulted in the reinstatement of workers fired for union activity, with several leading to union access or recognition.

But since 2023, fewer cases have produced new union representation, and many disputes have been closed during review without securing lasting gains.

“The USMCA delivered real victories for workers in its early years, but progress has slowed,” said Lisa McCormick, a New Jersey progressive who says Americans are victims in a 50-year class war fueled by corporate greed.

“The mechanism allows petitions and targeted penalties, but it hasn’t ensured Mexican workers real union representation or protected U.S. jobs and wages,” said Roxanne Brown, International Vice President at Large of the United Steelworkers.

“Promoting corporate accountability through trade agreements with a mechanism that is both rapid and has real teeth upends the logic of traditional free trade agreements, which too often focused on granting corporate privileges without obligations,” said Daniel Rangel, Research Director at Rethink Trade and lead author of the study.

“To protect this progress and ensure the RRM lives up to its potential, essential improvements must be made in the 2026 review to block corporate strategies that evade accountability and to strengthen labor rights enforcement in North America,” said Rangel.

“The RRM can break through, but unless it’s faster, stronger, and backed by real accountability, victories risk being only symbolic,” said Captain Ángel Domínguez Catzín, President of the Mexican College of Pilots.

“The RRM delivers quick relief, but decades of wage suppression require broader solutions like a sectoral minimum wage,” said Jason Wade, Top Advisor to the UAW president.

“The RRM has shown some impact, but it hasn’t fundamentally changed conditions for Mexican or U.S. workers,” said Benjamin Davis, International Affairs Director of the United Steelworkers.

“This report offers a timely assessment of the USMCA’s Rapid Response Mechanism, and I want to thank Rethink Trade for their contribution to this critical conversation,” said Congresswoman Linda Sánchez. “Civil society engagement remains essential to ensuring that trade agreements deliver real results for workers.”

“Democrats fought hard with President Trump to include the RRM as part of the renegotiated USMCA – recognizing that enforceable labor rights must be at the center of our trade policies,” said Sánchez. “As we approach the six-year review of the agreement, we must conduct a comprehensive review that identifies what is working with the RRM and gaps where the USMCA has fallen short.”

Rethink Trade recommends changes in 2026 to accelerate enforcement, close loopholes, and strengthen remedies.

Proposed reforms include clarifying penalties, expanding oversight powers, ensuring employers bargain in good faith, and making fact-finding more transparent.

Without these adjustments, advocates warn, the RRM risks becoming symbolic rather than transformative.