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Aug 29, 2018

New NAFTA labor standards may be difficult to enforce

As part of the ongoing renegotiation of the North American Free Trade Agreement, the United States and Mexico have tentatively agreed to new higher labor standards. One provision that has automakers’ attention requires 40-45 percent of a car be made by workers earning at least $16 per hour. The goal is to incentivize car companies […]

by Andy Uhler
Traders and financial professionals work at the opening bell on the floor of the New York Stock Exchange (NYSE), August 27, 2018 in New York City. The Dow was up over 200 points at the open, following news that the United States and Mexico are closer to a deal on NAFTA. 
Traders and financial professionals work at the opening bell on the floor of the New York Stock Exchange (NYSE), August 27, 2018 in New York City. The Dow was up over 200 points at the open, following news that the United States and Mexico are closer to a deal on NAFTA. 
Drew Angerer/Getty Images

As part of the ongoing renegotiation of the North American Free Trade Agreement, the United States and Mexico have tentatively agreed to new higher labor standards. One provision that has automakers’ attention requires 40-45 percent of a car be made by workers earning at least $16 per hour. The goal is to incentivize car companies to keep more production in the United States, where wages meet the standard. But enforcing the rule may be complicated. 

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