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U.S. Floats NAFTA Plan to Tie Pay Levels to Trade Access
The U.S. has proposed a plan that would link vehicle production covered by the North American Free Trade Agreement to the wages paid to auto workers.
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The U.S. has proposed a plan that would link vehicle production covered by the North American Free Trade Agreement to the wages paid to auto workers.
Sources tell Reuters that U.S. negotiators floated the idea as a substitute for its rejected demand that 50% of the content of vehicles made in the NAFTA region must comes from the U.S. The U.S. also wants to hike the minimum local content requirement for NAFTA-qualified vehicles to 85% from the current 62.5%.
The pay scheme would add to the local content calculations a stipulation that workers be paid as much as $15 per hour. Such a requirement would favor Canada and the U.S., which already exceed that level of pay.
Reuters says negotiators from Canada and Mexico are scheduled to meet on Friday to discuss the slow-moving NAFTA talks. A date for the next round of formal negotiations, which will occur in Washington, D.C., hasn’t been announced.
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