This chapter explores the complex interplay among domestic politics, national sovereignty concerns, and international labor rights that together led the United States, Mexico, and Canada to agree to unprecedented labor provisions in the United States Mexico Canada Agreement (USMCA). The chapter builds on the insights of Professor Kevin J Middlebrook regarding the tension between state sovereignty and the international recognition of labor rights that transcend national boundaries. The chapter reviews the economic and political context that led the US to demand renegotiation of the labor provisions of the North American Free Trade Agreement (NAFTA). It explores Mexico’s economic and political motives to reach a settlement. It then outlines the notable labor reforms required of Mexico and the new labor obligations laid out in the agreement. It describes the new enforcement mechanism created to remedy labor rights violations at the level of the firm as well as the level of the state and summarizes the experience with the mechanism to date. The chapter then evaluates the changes in terms of effectiveness, legitimacy, and the impact on sovereignty in the Mexican political context and concludes with a reflection on the agreement’s potential as a model for future agreements.