By coughing seven trillion dollars in the ego of calling once there is the risk of ninety- hundred hundred SMEs that generate eighty percent. Give me twenty minutes of your time and I, in return, give you information on the most relevant issues in foreign trade, tax and customs with a human touch and let ' s make a truek a podcast of Magic TVs and Mexica hello very good afternoon be all welcome, welcome. Let' s barter an exclusive telese magas
event in Mexico. I am very grateful for the presence of our panelists. It is a pleasure to see you welcome, also welcome to those who join through social networks and those who always connect with us. Monday and Wednesday.
It' s a pleasure to be here with you. I am pleased today to be able to accompany you and present our presenter of the day, Dr José Manuel Vargas Menchaca, who is very happy to see you, to greet you being here for that, to listen, to your talk today and then to tell us about the labor mechanisms of rapid response in the welcome fear, Dr José Manuel. Thank you very much. Thank you very much also for the opportunity to be here. Thank you to teacher Daniela Martínez, to your
teacher of the via cogen and to graduate Magdalena Jiménez. Likewise, I am pleased to be here with my friends, my dear friends, Dr Maximo Carvajal Contreras and the Donal Gabriel Béjar view, which I also value and importantly Thank you very much for the opportunity, because we are pleased to have you here. It will be a pleasure to hear it and, if I may, Doctor, I will give readings or countenance so that everyone who is here can
know a little more about you. Dr José Manuel Vargas in Menchaca is a master and doctor of law and a specialist in public finance at UNAM. He was a panelist of the nineteenth chapter of the Telecano, now chapter ten of the arbiter themedium of the International Court of London. He served in Mexican ports.
Deconcentrated body of the Ministry of Communications and Transport and the International Business Practices Unit of the Ministry of Economy. Currently consultant on foreign trade, thesis advisor and Professor at the Law Faculty of UNAM, Anahua University, Monterrey Institute of Technology, University of the Americas, Graduate Institute, GV Institute Center of Web Legal Studies and Specialized Institute for Executives. Member of the Mexican Bar Association of
Foreign Trade Professors at UNAM del Ilustre and National Bar Association of Mexico. Chairman of the International Trade Commission of the Mexican Institute of Public Accountants, Vice- Chairman of the Concamin Law Commission and Vice- Chairman of the Foreign Trade Compliance Commission. Customs S S. S. S. S. S. It ' s a preamble. I give you the word Doctor José Manuel knows and to the dynamic we are very happy to receive it again and because you already
have the controls in case you want to project. And so in the end we give a few minutes for the panelists' questions. Or, if you want to read some during the development of the talk ahead. The microphones are yours. That' s right, I' d rather exhaust the whole exposure. I would ask, please, those attending to take notes of your questions. I am going to try, as far as possible, to respond to all of them and, for the purposes of exposure, I basically set three
objectives. As many of you know and know me, I never read what is in the presentations. I ask you then to listen to me and additionally read the images. So, to achieve these three objectives, I divided into five sections about fifteen images of content. My purpose is to highlight some important things about the labor mechanism and, obviously, to enter the main course that would be to understand why the mechanism exists and then what it holds for us.
The first request for a panel related to Mina San Martín, belonging to the Mexican Group, which in the last month has given the note to inform them. Then I start with exposure. On the one hand, to understand that for the United States there is a major concern that countries that manufacture goods that are exported to the United States forgive, white doctor in forgiveness. I don' t know if it' ll help me do it in full screen.
Nothing more. Thank you. Yeah, yeah, yeah. They tell me again please, this way and it started to rain and it seems to me that I am also getting noise ahead. You don' t see Ahorita in full screen, you see the slides, the thumbnails on one side is not yet in full screen. Ah agree and you don' t get to read because you put them in a sufficiently broad letter. Yeah, they' re pretty big on this monitor in case you want to keep them. So,
yes, they get to read. Ok exact, exact they are in size twenty- two, which is a sufficiently large letter and with the idea of being able to see you and my po vegas here too without invading the whole gang, then I said it was a concern of the Americans that you pay them to share forgiveness. He' s not sharing right now. You ' ve stopped sharing, doctor, I was going to comment on something, so you' ve stopped sharing. We don' t see your presentation anymore.
Yeah, yeah, it looks good, it doesn' t really look like, it' s projecting right now. Okay. Here we warn you when we can already visualize it forward. So we have it perfect. Thanks well, then I told them these countries export you goods from the United States, sometimes they do not meet a number of minimum labor requirements. Someone might think of the countries of the Asian bloc, but also in the Latin American countries, the effectiveness of the enforcement of labor laws, at least in the
vision of the United States, is not that of Juan. And so, from about the year of one thousand nine hundred and ninety- two that the Telecano subscription was proposed, the Americans promoted an agreement that frightened states, Canada and Mexico, which was called a clan. It was identified as a parallel agreement that you observe there several of the purposes for those effects. Among them, one thing that has occurred in recent months is that forced labour does not
exist and that there are appropriate conditions in the event of child labour. Also, what is known in collective labour law, such as the right of association and the opportunity to negotiate collective contracts and, where appropriate, contracts. They were also struck by the fact that there was an intention in that clan that there would be a protection of migrant workers and, obviously, here it would seem a good private of the Mexican side, because obviously we have more migrant
work from Mexico to the United States than the other way around. As you know, that clumsy one. While it was true, it was seen as a great opportunity for the three countries to work together in the field of labour, the results they had were not expected. On the one hand, while it is true, the creation of a structure such as the VEN was promoted in the second paragraph of the image and it was agreed that there would be at least one office in each of the three countries. This wasn' t
enough. It means that the impulse, like many things that took place on the telecan practically around the turn of six eight ten years, was allowed to die, and not only for the Americans, but also for the Canadian and Mexican sides. Then the achievements of that parallel agreement can be identified in this picture by the fact that some issues had reached the level of consultations. In terms of alternate dispute settlement mechanisms they are identified as negotiation and in terms of
international law they are referred to as consultations. About it. You will see there the five points on which the dozen issues concerned when you went to the consultations. And, I repeat, there was no supranational body here, there was no court that could impose on any of the three countries the decisions,
the results, the agreements that could have been reached. So, this is the most relevant relatively recent antecedent, a little over thirty years, called a clan and that obviously ends its validity, just as it happens with the telecan in two thousand twenty. Then, in the next normal precedent in force today,
many people continue to identify it as the TPP. But let us remember that, while it is true, it was signed in February of two thousand sixteen, one of Donald Trump' s campaign commitments towards October of two thousand sixteen and then concreteized in two thousand seventeen, was the withdrawal of that TEPET from the United States. It was signed in the Baragobama administration and then, I repeat, it did not seem to him the terms and conditions for that
negotiation with a dozen countries. Then those who remained, including Japan and Metico, took the lead in making modativist changes, but it draws attention. Despite the departure from the United States, no one made the decision to withdraw one of the most relevant issues of interest to the United States, the labor chapter, and that, perhaps for concerns of countries as they see them in the first paragraph, such as Malaysia, as could be Vietnam, where someone would
worry about the labor constraints of the work. The fact is that the labor chapter is kept and you can consult it on the official day invoked in the third paragraph of the image of two thousand eighteen, where the labor chapter is number nineteen. The general aspects of this chapter are basically supported by the clan,
as these three numerables observe. I repeat, things linked to migrant work or migrant workers are omitted and then what improvement or area of opportunity has been improved in this one that you now have a supranational body to solve them completely. It means they' re handled on three levels. On the one hand, cooperation, at a second level above, consultations or negotiations and then,
at a third level, recourse to the control settlement mechanism. As you know, all the trade agreements and treaties that Mexico has signed just over fifty countries have a dispute settlement chapter. In the case of the cp TPP, as they would be for us or for us in Spanish. The TIPAT is provided for in the twenty- eighth chapter twenty- eight of the TITAC and this mechanism, if we made it a parallel with the TEMEC, would be a
similar to the thirty- one chapter of the twenty- eight. This is similar to the TEMEC' s thirty- one and, I repeat, different from the rapid response labour mechanism envisaged in the subject. Continue to enter the fear. There are some elements I don' t want. I want you to get out of sight. On the one hand, that the last day of work of López Perdón de Peña Nieto was subscribed to the topic. I
put some pictures alluding to that event that happened in Argentina. Someone would say why if Argentina was not a party, but it was decided that an event
linked to another trade forum would be used to sign the theme Mexico. Many academics always comment that in the international arena, Mexico, for some strange reason, wants to be the most accomplished student of all, even though the others do not function Here the same happens and they will observe how in two thousand nineteen, that is, a few months after seeing the temach signed it gave the executive power to the process of approval and ratification that, if any,
is made of the Treaties. And you will see there, in this third paragraph of the image, how and by the middle of the year, Mexico had, on the one hand, approved that topic, which was not considered and here I do not know why in the left hand it did not tell
you to the right what was doing reverse boada. The fact is that two thousand nineteen had the negotiation of what is called the modified Protocol Since the beginning of the year Robert like Heiser had compacted himself with Jesus be of Juri, who was responsible, by the government of López Obrador, for following him from July of two thousand eighteen, at the conclusion of the negotiation of the Treaty
and then with the administration, first of December of two thousand seventeen. From now on he was appointed by López Olvador as responsible, since we would say administration application of the work. But curiously, the senators and the Democratic Party in general disagreed with the terms on which they had been negotiated. The nineteenth chapter of the PIPA that later became irrelevant to the United States and then with the twenty- three chapter of the topic. Then, for months they were
in a negotiating process that led to a modifying protocol. As you know, those engaged in foreign trade, there is the fourth point that since the time of the telecan has been working with representatives of the private sector and sometimes there are more than 300 representatives before they attend this room, as the final stage
of the protocol a few days before it was filmed. Obviously, when Jesus is from the fine room of existence of this protocol, he does so in terms simply of discourse and the port together asked him to share the text of
that modifier protocol. For this purpose it would be worth saying that the previous meeting was a Sunday at the premises of the ME and the next day, the coordinators of several of the tables, of the thirty- one chapters, when thirty- four were present to make this text, were made to see Jesus Sea of the number of aspects that were inconvenient to the position of Mexico.
However, to everyone' s surprise, eight days later, nine days later, the announcement was already being made, guests were being invited to various public and private sector officials to present themselves to sign that amending protocol at the
National Palace. There, at the top appears a photo of the attendees to that fir and then, also strangely again, as the most accomplished student, that same day, in the afternoon, a communication is generated so that the commissions responsible for approving that document will review it and in a strange way. A document that includes in pages of the Official Journal more than a hundred pages and that we put them together in the text of TEMAX are another thousand in
a space of two days. I still doubt someone' s ability to not just read understand and understand the scope of the modification. The fact is, and that' s why there' s the sheet below the one hundred and eight senators attending, only one opposed all the others voted in favour, and I wonder if today they' ll understand the scope of this. Now what happens in that modifier protocol. Chapter thirty- one dispute settlement mechanism had existed
since November of two thousand and eighteen. What are the relevant changes for the purposes of the topic we are dealing with, because there are many more changes, but for the labor mechanism of rapid response is the incorporation of two annexes And worth saying that only one was negotiated between Mexico and the United States or otherwise, someone could say the imposition of a labor mechanism of rapid response on Mexico and an identical copy of that annex was reproduced as Annex thirty- one
B. And that is why both the pages where you can find in the Official Journal appear there, that I already commented on June 29, two thousand twenty these chapters and that I would recommend not only the reading of the topic, but those who want to see these novel aspects where the topic of work and the topic of higher formation is linked in that difficult diary. Now what
' s going on in this part? On the one hand, we had already said that you have virtually identical provisions between the 23rd chapter of the TEMEC and the 19th chapter of GDP, but there were also other important aspects. One of them, and laborers haven' t handled much of it is the famous 23rd Annex A Chapter 23 has only one annex and it is forgiven that it says so, but with affection. For magic, what you have to do is amend your labor legislation and for that, moreover, the chapter the
compromise stated that it should be done by January of two thousand eighteen. Obviously, the times did not give, because the modification protocol was barely being signed on December 12 and this existence, because it was not very correct. But what Mexico did do was two things. On the one hand, to issue important modifications on the first of May of two thousand nineteen and two to join an Agreement of Collective Law that was established since nineteen hundred forty- nine within
the framework of the ILOE. Then you come here, I repeat, three levels. Again for the settlement of conflicts, on the one hand, cooperation, on the other hand, consultations and now for the settlement of disputes, a mechanism that we could call suitable dog specific for the settlement of disputes in
labor matters. So that there is no urban legend, I decided in three four images to transcribe the text of some articles containing that annex thirty- one a and, I repeat, the same will be found in thirty- one. Then which aspects become relevant to the effects of exposure. The fact that there may be a denial of collective labour rights in Mexico must be limited to
what is referred to here as a covered facility. It means Mexico and the United States agreed in about ten sectors of industries in which they are concerned about this lack of compliance, of respect for the guarantee of these collective labor rights. And at one point it is not only limited to the production of goods, but also to the provision of services and then the sectors that are identified as covered installation or also called pyrioritarian sectors. You see them reflected here.
I still remember some Bimbo representative hanging around because someone on the American side had leaked to him that they would also include bakery products that had an industrial fabrication. As you know, today, the world' s most important baker with plants, even in China, is bivo. Bimbo has even bought some American
companies and is then included here. Some others are more traditional where Mexican companies have had an important participation in the United States, such as cement or steel or some growing of the last fifteen years in Mexico, where I call it colloquially that we became the autopartiers of the aeronautics industry and that had included it.
So, when this rapid response labour mechanism is in place, among other things, when there is a denial of labour rights, specifically the right of association, the exercise of the trade union book and two the free negotiation of
the collective contract without impressions. And here let' s remember, for those who are not laborers that for decades, that corporativism that we have had since the time of the Presidents General has translated into what is known as these collective protection contracts, with the idea that not any union can break out a strike in your company. We would even say the disagreement of the EDENIS workers themselves.
I also talk about limitations, because what one would expect in a general agreement and then in particular between countries, because it is a flat even and in any case, if the flat was not equal well, someone would expect that in other areas, in other sectors, in other chapters would have come. I, with all due respect, do not perceive them. It seems to me that there is not a single equal here and I make the following comment. In this chapter twenty- three there is no clear and precise reference
to the protection of migrant workers. We would be particularly concerned about Mexican workers. Two would say the initiation of the labor mechanism of rapid response against Mexico, against Mexican companies, is simply because of the failure to comply with the reform of May 1, 2000, 20. On the US side, however, the condition is imposed that first a determination by the National Labor Relations Board to ensure that only in the event of non- compliance with collective labour law
commitments can it be activated. In the case of Annex Thirty- B, this National Labour Relations Board was simply changed to the Canadian competent authority. It means the footnotes one of thirty- one A and thirty- one B have that single difference from the authority' s mission. But then I' m sorry to say it. Yes, it seems that the labor rapid response mechanism is alone and exclusively focused on asking for Mexico' s violations of labor law.
He went over to the next point and let me see that right now, I don' t realize there is. I also insisted on some of the differences. I' m sorry I came back a little bit from not opening the image. Yes, something I also failed to insist on that imbalance, that convention today, which is not the only one. Mexico has refused to sign various OIGE agreements, but this was one of them and was pressured
by the United States. And yet the United States is not part of that ILO Convention which, as you will observe, already has one hundred and seventy - eight countries of writers. Then I ask you, I force you to become a party to that Convention, but I am not a party. So this is another one of the imbalance points I' m moving forward. Now yes, in the case of this San Martín mine it is already identified as
case number twelve. For many of us, we have read in the press heard the communicators verbally saying that there have been various claims by the United States Government, specifically the use of UNIRS stands Rade representative in relation to companies based in Mexico that have allegedly violated these collective labour rights. In the case of this company of group Mexico, is it said, on the one hand, in the Mexican position that the first condition to be affected the interests of the
United States is that the company carries out exports from the United States? It means you' re hurting if there' s a violation of rights, if that company doesn' t export to territory and the United States. Point two, that which we have provided for in article 14 of the Constitution which concerns retroactivity. It means in very flat terms, how it can affect you or how it can cover a Treaty whose date of entry into force was the first
of July of two thousand and twenty. When it comes to an old case that has happened before and here it is something relevant and that is why I put it with bold ones, that is, the conflict is old. But it turns out that the strike procedure that we were saying in action for months over the course of years seems to have been violated, having made a new negotiation for the purpose of resuming operations with a coalition of workers different from that
which were exercising the right to hang. And there it seemed in the U S mission that it would be a recent rape. Regardless of whether the conflict occurred in advance of the entry into force of the tempo, then for us we would say the stages of the rapid response labour mechanism have been fulfilled. It means the owner of the use put it to the Mexican government, where both the Secreta de Economía and the Secretariat of Labor act together. The Government
of Mexico is reviewing whether or not a denial of rights exists. The position of the Mexican government was to say it is not inappropriate because of the two conditions already mentioned and, consequently, the titular cathrainta of the uspiar said we are going forward and then we are going to request the establishment of the ship.
It means that, at the return of three years of coming into force of the topic, for the first time we will have the opportunity to know the establishment of a vale, say, from the second meeting, in the year two thousand twenty- one the list of panelists was established, as well as there is a list of about thirty panelists for chapter thirty- one, where there is a similar number for chapter ten, which is that of commercial
remedies. There are also panelists already agreed by the three countries for the effects of a conflict Mexico United States. A conflict Mexico sings then means that only to continue the stage would it be necessary to choose the partisans. Advance also something is already happening in the last ten months we would say, something that happened in the teleca why there were requests of panel and that the panels were
not established because basically by disinterest of the two parts. I explain myself to try to bring him to this day. Many of us, at the end of last year, learned of the conclusion of the panel procedure under rules of
origin in the automobile sector. Most of us engaged in foreign trade, do not know what the terms or commitments of compliance of the United States and then Canada and Mexico are, despite having won as a result of the panel' s decision and do not have a certain date of compliance by the United States or, at the very least, there is no public information regarding it.
Then we have the case of Glyphosate and transgenic maes, where the Mexican government made changes, reversed the absolute restriction on the import of technical teachers, made reforms in February this year and a little over two months ago the United States also said it would request a panel to examine that. And then what are
countries doing? Draging fied dragging his feet. If you tell me you have a claim against me, but you haven' t fulfilled something I won well, then we wait to see what it is in terms of the quick response
labor mechanism. To this day we should already be aware of what are the panelists appointed for the purposes of this rapid response labor mechanism, which is a much more agile mechanism than chapter thirty- one would be and which is worth saying, in my opinion, to issue a decision of the panel in less than one hundred and eighty days, as was done in rules of origin,
marks suitable times for the resolution of problems. Then, in the case of the maestrongenic, it should happen at the return of more than two months, because we had news sales. So it seems that these clashes between the two governments are already marking a deterioration in the fulfillment of the pros. I put that as before able. As we all know, it is difficult for a legal text, including a trade treaty agreement, to have and specify all the
terms and situations that may arise. The case of the San Martín mine is a clear object and here I put are not all, but I put some of the situations or aspects that, once installed, the panel will have to solve. First point competition. While it is true, there is annex thirty - one A. While it was true, countries agreed on the appointment of panellists. Perhaps it involves chapter 23 and that labor legislation can reach a company
that does not export the United States. This is feasible because even some of my doctoral students here at the CUE and some other at the IPD had pointed out because there is a different and good treatment, because everything comes from the subject. It means that you only fulfil the commitments that are determined in relation to a certain trade agreement and not a general to all the companies that have
signed with collective agreements or against the law in Mexico, point two. If you are going to determine that competence, then it will achieve that a conflict that arose ahead of the entry into force of the fear may be part of the competence of that panel. This is possible for that panel to make decisions about a previous set and then, regardless of whether the conflict has arisen previously.
This resumption of activities or this renegotiation, in the event of the end of the strike, was or was not done with a union or coalition of workers other than those who had established the panel and these issues. I believe that for any scholar they become important. Some of my friends, Dr Oscar Cruz Warner, said the same thing happened with some issues from chapter nineteen of the telecan where the first panels might have to enter into the discussion of what
competition this type of organ has. It is clear that they are arbitral tribunals, but there are things like this the conflict of the San Martín Mine, which are not key. That' s what I' m leaving the exhibition with. I hope I have been clear on the elements that I would like them to know and I tried to finish with the idea of having a chance to make an exchange of questions and answers that will surely be very interesting,
both from the panelists. I also thank Master Alejandro Alcarde and Master Héctor Castro and Dr Guar for joining us on bread today. Thank you very much, teacher of the right day, doctor, and well, again, thank you all for your comments, for your contributions, for being present today in a barter. Thank you very much, Doctor Vargas, for everything you share with us today is always a pleasure and a pleasure to hear it. We hope to have him here soon and, well, many congratulations on the chat.
And so, if I may, I' m going to read to the recognition and make a barter and say let' s barter otor and the present recognition to Dr Manuel Vargas Menchaca, José Manuel Vargas Menchaca, for bartering in the virtual conversation with the issue of labor mechanism of rapid response today, October 2, 23, signed by Dr. Octavio de la Torre Stéfano, founder of Telese Magazine and teacher Daniela Martínez, CEO of Telese Magazí in Mexico. Nice to hear it, nice to be here with you, and thank you
all so much for joining us today. We look forward to seeing you on Wednesday. Thank you very much, thank you very much. Bust to say hello. We' ve reached the end of today' s barge. Thank you so much for joining us. This was it. Let' s barter through. Som un evento de telc Magas y México. If you liked this talk, don' t forget to share each event with your contacts so that
we continue to spread knowledge and stay up to date. They find all our talks through our online education platform, entering www TLC Magas in Mexico com Mx in the course section, where you can see them again without cost. If you are interested in any specific topic, send us a message through the social networks of tels Magas in Mexico and we will look for an expert who can clarify your doubts. This was let' s do a preak.
