National Post (National Edition)

MEXICO NOW HAS NEARLY HALF OF NORTH AMERICA’S AUTO JOBS.

- Jerry Dias is the national president of the Canadian union Unifor. Dennis Williams is the president of the United Automobile Workers. The New York Times

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.

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