As of May 18, 2023, in a demonstration of the Mexican government's significant progress in complying with the obligations of the United States-Mexico-Canada Agreement (USMCA), Mexico's Ministry of Labor and Social Security will begin enforcing the Forced Labor Regulations, which prohibit the import of goods produced with slave labor or labor similar to slavery.
The regulation empowers the Ministry of Labor and Social Security (Secretaría del Trabajo y Previsión Social - "STPS") to investigate and publish resolutions regarding goods produced with any use of slave labor or similar in the production chain. Mexican importers must keep information and documentation to demonstrate that their imported goods are not on the STPS prohibited lists. To meet these requirements, companies must implement due diligence, traceability and transparency practices in their supply chains. This same compliance obligation will have to be observed by Brazilian exporters who intend to maintain supply within the legal levels required by Brazilian and Mexican law.
The clarifications and guidelines from the STPS and the Mexican Ministry of Economy are intended to help Mexican importers and exporters from other geographies who need to adapt to comply with the requirements established by the regulations. It is crucial that companies adopt an international approach to Compliance programs, especially with Social Factors (within the ESG perspective), which in this case implies an increase in evidence of compliance with the eradication of slave labor throughout the global production chain.
For questions regarding international regulations, the team at Caminha Advogados is available to provide further information.
