[co-author: Mariana Ávila, and Juan Pablo Vázquez] As a result of the United States-Mexico-Canada Agreement (“UMSCA”) over the next years, incentives for nearshoring to Mexico will remain high for companies doing business in the U.S. and Canadian market, among others. Thus, companies in Mexico must have a labor, social security, and ESG (Environmental, Social and Governance) environment that does not generate risks. As a result of the “UMSCA” and the provisions issued by the International Labor Organization (ILO); the Federal Labor Law (“FLL”) has needed to adapt to these changes. In addition, following the COVID-19 pandemic, the phenomenon of Nearshoring has increased. Nearshoring is the strategy whereby a company transfers part of its production to third parties that, despite being located in other countries, are located in nearby destinations with a similar time zone. Nearshoring in Mexico has impacted the FLL and compliance on ESG matters in a number of ways. Some of the most significant impacts include: Changes to labor regulations: Mexico has made significant changes to its labor regulations in recent years in an effort to attract nearshoring investments from foreign companies. These changes have included simplifying the hiring process and increasing flexibility for employers. In ESG […]
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
K&X Design and Investment Technology, LLC
Invest The Invisible Impact
