Levin Tears into Mexican Manufacturing Standards in New TPP Critique
The Mexican auto industry continues to exploit low labor standards and declining wages to boost manufacturing, and the country may soon surpass Canada and Japan as the largest auto exporter to the U.S., said House Ways and Means ranking member Sandy Levin, D-Mich., in a July 10 blog post (here). Levin used research from a University of California NAFTA scholar, Harley Shaiken, for much of the arguments he spelled out in the blog (here).
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Mexico is a key Trans-Pacific Partnership (TPP) negotiating party. Citing the Shaiken research, Levin said Mexican manufacturing has increased 80 percent since the outset of NAFTA, but real wages have fallen nearly 20 percent. “Some credit Mexico’s network of trade agreements as the source of attraction for auto industry investment, noting that Mexico has agreements with over 40 countries while the United States has far fewer agreements,” said Levin. “However, the vast majority of Mexico’s vehicle exports – nearly 80 percent – are destined for the United States and Canada.”
Mexican workers still face significant obstacles in forming independent union and bargaining collectively, the blog said. The Mexican Conciliation and Arbitration Boards, the body designed to resolve labor disputes, strongly favors the government and industry leaders, said Levin. Forced and child labor remain “prevalent” in the country, he added. “Meaningful changes need to be made, commitments need to be secured, and implementation needs to take place as part of the TPP that will address and improve Mexico’s labor standards,” said Levin.