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Labor Regimes and Free Trade in North America: From the North American Free Trade Agreement to the United States–Mexico–Canada Agreement
Author(s) -
Campos Ortiz Francisco E.
Publication year - 2019
Publication title -
latin american policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.195
H-Index - 4
eISSN - 2041-7373
pISSN - 2041-7365
DOI - 10.1111/lamp.12171
Subject(s) - free trade agreement , treaty , free trade , international trade , trade agreement , duty , business , economics , international economics , political science , law
This article provides a comparative assessment of the labor provisions in the United States–Mexico–Canada Agreement (USMCA) and the North American Free Trade Agreement. It also evaluates new labor‐related requirements incorporated in the rules of origin (ROO) rather than the labor chapter of the newer treaty. The ROO in the USMCA determine a labor value content requirement for passenger vehicles and light and heavy trucks. No previous free trade agreement mandates that a fraction of a product be made by workers earning a specific minimum wage to qualify for duty‐free access. The new clause has raised concerns about its enforceability, which this article explores. Private compliance initiatives are presented as a means to strengthen compliance with the new labor regime without disrupting existing regional production networks.