Dem Leaders Dubious about New NAFTA Labor Rules
The ruling Democrats on a key congressional committee on trade issues are dubious – at best – about the labor provisions of GOP President Donald Trump’s new NAFTA. And they’re letting Trump’s U.S. Trade Representative, Robert Lighthizer, know it.
Not only that, but the Democratic majority on the House Ways and Means Committee doesn’t like the so-called free trade pact’s environmental safeguards either.
“As our committee prepares to consider the renegotiated trade agreement with Canada and Mexico, we write to express our concerns regarding whether the new agreement will lead to meaningful and lasting labor reform in Mexico,” the Democrats, led by Committee Chairman Richard Neal, D-Mass., wrote.
“Our question also stems from the fact that congressional Democrats concerned with whether trade agreement labor provisions will be meaningful have always been required to take a leap of faith: Vote first and hope to see changes later. This time needs to be different,” they warned.
Their April 11 letter followed a hearing days before, featuring five union officials, plus Thea Lee of the Economic Policy Institute, outlining – in detail – holes in the proposed trade pact’s labor provisions, and particularly in enforcement of its worker rights section.
Unlike the current 26-year-old NAFTA, worker rights are in the text of the new pact, formally called the U.S.-Mexico-Canada Agreement (USMCA). But those rights comply with weak International Labour Organization standards, and could still allow rampant worker exploitation in Mexico, especially given Mexico’s terrible record on worker rights, company-controlled unions and outright repression.
U.S.-based multinational corporations have seized on Mexico’s weak labor and environmental laws, low pay, lax enforcement and overall repression to move everything from call centers to car production to Oreo cookie baking to Mexico. Those moves fulfilled labor’s prediction of massive U.S. job losses to Mexico after NAFTA.
The George H.W. Bush and Bill Clinton administrations pushed legislation implementing NAFTA over strenuous organized labor opposition. Under federal trade law, the Ways and Means Committee must consider – and cannot change – any such legislation, which both houses of Congress must then vote on.
That prospect has led labor to launch a campaign critical of the new NAFTA.
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