Trade Cases
U.S., Canada Autoworkers Speak Out on NAFTA
Written by Sandy Williams
July 13, 2017
Autoworkers in the U.S. and Canada say any renegotiation of the North American Free Trade Agreement must lead to higher wages for all three countries, reverse trade deficits with Mexico, and create new manufacturing jobs in the U.S. and Canada.
In a joint statement, the United Autoworkers and Canadian association UNIFOR noted that the trade deficit for motor vehicles and parts between 1993 and 2016 has grown dramatically with Mexico. The overall automotive trade deficit for the U.S. rocketed from 3.5 billion to $45.1 billion during the period, while the deficit for Canada with Mexico jumped from $1.6 billion to $8.7 billion.
Behind the staggering increase is the inequality in wage growth and labor conditions between the U.S. and Canada and its southern partner Mexico. The average autoworker in Mexico makes around $3.95 per hour despite record growth for the industry. Unenforced labor laws and pro-management unions have led to abuse of worker rights, said the unions in their statement. Lower wages and benefits have resulted in making Mexico an attractive production site for automakers, disrupting the balance of automotive production and exports within NAFTA.
UAW and UNIFOR together represent 245,000 workers in the North American auto assembly and parts supplier segment and more than one million auto industry retirees. UNIFOR and the UAW said of their joint statement, “We would have welcomed the participation of representatives from Mexican free trade unions in the auto sector, but there are none that can speak for Mexican workers – and that is at the core of the problem.”
The unions offered four priorities that they believe must be addressed in any auto-related NAFTA provisions:
- Strengthening labor standards and raising wages
- Balanced trade
- Real “Made in North America” rules
- A fair share of benefits for workers in each country
“Modern trade agreements aim to pit workers against one another by design, with progress for none the assured outcome,” said UAW and UNIFOR. “Auto workers in the United States, Canada and Mexico must collaborate to ensure that the re-negotiation of NAFTA is an opportunity that delivers gains for all.”
Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases
CRU: Brazilian Steelmakers Scale Back Amid Calls for Import Duties; Mexico Imposes Them
ArcelorMittal said it expects to produce less steel than previously forecast in Brazil. Gerdau has hinted at potential layoffs as imports surge. The Brazil Steel Institute is asking the government to raise import levies to 25% from the existing 9.6%. Meanwhile, Mexico has applied levies to some steel imports.
Biden to Meet EU Officials in Washington to Discuss Steel
US President Joe Biden is set to meet European Commission President Ursula von der Leyen and European Council President Charles Michel on Oct. 20 in Washington ahead of a deadline for an agreement on steel, according to a report in Reuters.
China Has Failed to Comply With WTO Commitments: AISI
The American Iron and Steel Institute (AISI) has laid out a case for China’s failure to comply with its World Trade Organization (WTO) obligations, which it joined in 2001.
Deputy USTR Hits Out at ‘Surge’ of Mexican Steel Imports
Deputy United States Trade Representative (USTR) Jayme White met on Wednesday with Mexico’s Under Secretary of Economy for Foreign Trade Alejandro Encinas, and discussed issues regarding the “surge” into the US of Mexican steel and aluminum imports.
Leibowitz: Europe Aims to Impose Countervailing Duties on EVs From China
Trade policy moves create great ironies sometimes. I often write about these ironies when the US acts against the interests of the country as a whole by protecting certain industries from international competition. But the US is not alone, especially in recent years as the World Trade Organization and the international geopolitical order have been […]