Mexico has published a resolution that prohibits the import of goods made with forced, compulsory, or child labor, fulfilling its obligation under the 2020 United States-Mexico-Canada Agreement (USMCA). The resolution will come into effect on May 18, 2023. The US has introduced the Uyghur Forced Labour Prevention Act (UFLPA), which grants increased powers to Customs and Border Protection (CBP) to prevent the import of products linked to forced labor. Canada’s Border Services Agency has existing authority to determine whether products are manufactured using forced labor and can detain goods suspected of being tainted. A bill expected to be passed in 2023, the Fighting Against Forced Labour and Child Labour in Supply Chains Act, will introduce an annual reporting requirement on certain institutions and entities that produce, sell, or distribute goods in Canada. The Mexican resolution does not impose due diligence requirements on importers, and the Ministry of Labor and Social Welfare will be responsible for conducting investigations and preventing the entry of products made with forced labor into Mexico.
Source BDO
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