The article discusses the potential threat to the new NAFTA deal due to disagreements over Mexico’s labour reforms. The US Democrats are pushing for stronger enforcement of labour rights in Mexico, particularly related to workers’ ability to form independent unions and bargain collectively. They argue that previous agreements failed to deliver on promises made to Mexican workers.
Key points from the article:
- The original NAFTA agreement linked trade and labour issues but left out guarantees of free unions.
- Many believe that increased trade enabled by NAFTA led to a decline in wages for Mexican workers.
- US Democrats are pushing for changes to provisions in the deal that provide 10 years of patent protection for biologics, which they warn could raise costs.
- Mexican legislation on labour reforms is necessary for the pact to be considered but does not guarantee ratification.
Some relevant statistics and data points from the article:
- The US sharpened enforcement provisions in subsequent trade deals with Columbia, Peru, and Central America.
- Establishing a system of labour courts could take two to four years.
- Determining whether union rights are being enforced on the ground could also take time.
Some possible implications of the disagreement over Mexico’s labour reforms:
- The new NAFTA deal may be delayed or even abandoned due to disagreements over labour rights.
- Stronger enforcement of labour rights in Mexico could lead to improved working conditions and higher wages for workers.
- The biologics patent protection provisions could raise costs for consumers if they are not modified.
Overall, the article highlights the complex issues surrounding trade agreements and the importance of ensuring that workers’ rights are protected.