The Globe and Mail reports in its Saturday edition that North American free-trade agreement
negotiations of late have focused almost entirely on autos. The Globe's Adrian Morrow writes that the current stumbling block, say unnamed sources, is a United States demand that North American content requirements be tied to wages, incentivizing automakers to source vehicle parts from factories that pay workers more than $15 (U.S.) an hour.
The measure is designed to discourage the creation of auto jobs in Mexico -- where workers earn about $3 (U.S.) -- fulfilling one of President Donald Trump's key campaign promises. It would also give Canada a victory in its quest to improve NAFTA labour standards.
Mexico, however, has been fighting the proposal.
The Mexican government said the three countries are aiming to "boost" the negotiating process. In Mexico City, the country's deputy minister for industry said he was hopeful for a swift resolution.
"I'm very convinced and have a good expectation that we will reach an agreement on the free-trade agreement very, very soon," Rogelio Garza said. The U.S. wants a fast deal to get NAFTA out of the way while it focuses on its confrontation with China over trade.
© 2024 Canjex Publishing Ltd. All rights reserved.