National Post (National Edition)
MEXICO NOW HAS NEARLY HALF OF NORTH AMERICA’S AUTO JOBS.
These common abuses have had a lasting economic impact as companies move from Canada and the United States to take advantage of workers who lack basic rights and are underpaid. Mexico has yet to develop a free and democratic trade union movement, and that’s at the heart of the problem.
This has created an uneven playing field. Since NAFTA went into effect, the United States has experienced a net loss of 10 vehicle assembly plants and Canada has lost four plants; Mexico nearly doubled its number of factories, gaining eight. Mexico now has nearly half of North America’s auto jobs, but Mexicans buy less than eight per cent of all vehicles sold in North America.
Modern trade agreements pit workers against one another by design. Autoworkers in the United States, Canada and Mexico must collaborate to ensure that the renegotiation of NAFTA delivers gains for all.
Despite NAFTA, the North American auto industry remains a powerhouse of advanced manufacturing, innovation and economic activity. Directly responsible for two million jobs across the continent, the industry serves as the anchor for supply chains including auto parts producers, suppliers of raw materials and service providers. For every auto assembly job, there are at least nine to 10 other jobs created — these are often good jobs with above average wages.
Meaningful NAFTA renegotiation must comprehensively focus on balanced trade that provides real wage growth for American, Canadian and most especially Mexican workers, whose suppressed wages are harmful for all three countries.
A proper trade agreement should eliminate sweetheart provisions that allow corporations to sue governments in secretive tribunals over regulations that protect workers and the environment. It must tackle unfair trade practices like currency manipulation by countries seeking to lower the cost of their exports. Finally, all three countries must step up to the plate and make lasting commitments to invest in infrastructure, crack down on corporations that manipulate tax laws to send jobs overseas and commit to immigration laws that stop businesses from exploiting immigrant workers.
The renegotiation of NAFTA offers an opportunity for real progress that must not be squandered with minor tweaking. We must not let this opportunity to fix the broken NAFTA legacy slip away. Since NAFTA was passed the U.S. has lost 10 auto assembly plants and Canada four while Mexico gained eight factories.