By: Lizbeth Espinosa
The Agreement between the United States of America, the United Mexican States, and Canada (USMCA), in effect since 2020, replaced the North American Free Trade Agreement (NAFTA), introducing significant changes in environmental regulation, strengthening commitments previously established through the North American Agreement on Environmental Cooperation (NAAEC) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Throughout the 32 provisions of Chapter 24, the USMCA regulates various topics, including corporate social responsibility and responsible business conduct, voluntary mechanisms to enhance environmental performance, trade and biodiversity, conservation and trade, sustainable forest management, and more.
The USMCA promotes compliance by subjecting Chapter 24 to the dispute settlement mechanism, which allows for the possibility of imposing economic sanctions in cases of non-compliance. It also includes additional instruments that reinforce these commitments, such as the Environmental Cooperation Agreement (ECA).
Furthermore, public participation is encouraged through two systems: 1) The “SEM” petition process, enabling residents of one party to hold a government accountable for environmental non-compliance, and 2) a system for individuals to submit questions that must be answered by governments. The Commission for Environmental Cooperation of North America monitors compliance and has accepted complaints against Mexico on issues such as the Maya Train and the protection of the loggerhead sea turtle.
Compliance with Chapter 24 is not only a legal requirement but also a vital strategy for sustainable success in North America, allowing businesses to use it to enhance their practices and promote sustainability.
