How to Cite
Abstract
The negotiations of a new NAFTA have focused attention on the Mexican auto industry. With increasing participation in the region’s markets, jobs, and portfolio investment and, as 90 percent of the U.S. trade deficit vis-à-vis Mexico, this industry is key for formulating a new NAFTA. President Trump has targeted it for criticism, considering it the best example of a treaty that has been bad for his country. That is why it is appropriate to look now at new explanations for the basis for the Mexican auto industry’s competitive advantages. This study is based on theories of business and investment cycles and concepts of market and institutional anchoring to evaluate the conditions for auto industry competitiveness under NAFTA. It argues that the sector has operated under political conditions of social dumping, basing its position in regional and global markets on illegitimate sources of comparative advantage.
Key words: NAFTA, auto industry, social dumping, renegotiations, work and wages
The negotiations of a new NAFTA have focused attention on the Mexican auto industry. With increasing participation in the region’s markets, jobs, and portfolio investment and, as 90 percent of the U.S. trade deficit vis-à-vis Mexico, this industry is key for formulating a new NAFTA. President Trump has targeted it for criticism, considering it the best example of a treaty that has been bad for his country. That is why it is appropriate to look now at new explanations for the basis for the Mexican auto industry’s competitive advantages. This study is based on theories of business and investment cycles and concepts of market and institutional anchoring to evaluate the conditions for auto industry competitiveness under NAFTA. It argues that the sector has operated under political conditions of social dumping, basing its position in regional and global markets on illegitimate sources of comparative advantage.
Key words: NAFTA, auto industry, social dumping, renegotiations, work and wages
negocios e inversiones y en conceptos de anclaje de mercado e institucional para evaluar las condiciones de competitividad de la IAM bajo el TLCAN. Su propuesta es que la IAM ha funcionado bajo políticas de dumping social, por lo que su posición en los mercados regionales y globales se basa en fuentes no legítimas de ventaja comparativa.
References
References
Álvarez, Lourdes. Carrillo, Jorge y González, María Luisa. (Coord.) (2014) “El auge de la industria automotriz en México en el siglo XXI. Reestructuración y catching up. México: UNAM.
Bensusan, Graciela y Kevin Middlebrook (2013). Sindicatos y Política en México: Cambios, Continuidades y Contradicciones. UAM-CLacso-Flacso.
Bensusán, Graciela and Alex Covarrubias (2016), “Relaciones laborales y salariales en la IAM : ¿vendrá el cambio de fuera?.” Covarrubias Alex, Graciela Bensusan, Arnulfo Arteaga y Sergio Sandoval, editores (2016). La Industria Automotriz en México: Relaciones de empleo, culturas organizacionales y factores psicosociales. Colson-CIAD y AM Editores.
Bernaciak, Magdalena (2014), “Social Dumping and the EU Integration Process.” Working Paper 2014.06. European Trade Union Institute.
Bouzas Ortiz José Alfonso y Aleida Hernández Cervantes (2008) Contratación colectiva de protección en México, Informe a la Organización Regional Interamericana de Trabajadores (ORIT). 2a reimp., México, Fundación Friedrich Ebert.
Bureau of Labor Statistics (BLS), May 2016, Occupational Employment Statistics. Online, https://www.bls.gov/oes/current/naics4_336100.htm. Accessed July 12, 2017.
Caraway, Teri L., Maria Lorena Cook, and Stephen F. Crowley. (2015), Working Through the Past: Labor and Authoritarian Legacies in Comparative Perspective. Ithaca, NY: Cornell University Press.
Carrillo V., Jorge (2016), “Oportunidades y retos en la inserción en cadenas de valor global La industria automotriz y aeroespacial en México, “ TECHIT 352.
Center for Automotive Research (CAR) (2016), The Growing Role of Mexico in the North American Automotive Industry. Trends, Drives and Forecats.
Comision Economica para America Latina (CEPAL) (2017), Brechas, Ejes y Desafios en el Vinculo entre lo Social y lo Productivo. Libros y Documentos Institucionales. Santiago, Chile.
Compa, Lance A (2001) “NAFTA’s Labour Side Agreement and International Labour Solidarity.” In P. Waterman & J. Wills, eds., Place, Space and the New Labour Internationalisms. Blackwell Publishing.
Compa, Lance and Tequila Brooks, (2015) NAFTA and the NAALC: Twenty Years of Trade-Labour Linkage in the Americas, Wolters Kluwer Publishers.
Cook, Maria Lorena (2007), The Politics of Labor Reform in Latin America: Between Flexibility and Rights. University Park, PA: Pennsylvania State University Press.
Covarrubias, Alex (2014). Explosión de la Industria Automotriz en México: De sus Encadenamientos Actuales a su Potencial Transformador. Friedrich-Ebert-Stiftung (FES). México.
Covarrubias., A. Sergio Sandoval., Graciela Bensusán., Arnulfo Ateaga. (2016). La Industria Automotriz en México. Relaciones de Empleo, Culturas Organizacionales y Factores Psicosociales. Clave Editorial. México, D.F.
De Buen Unna, Carlos (2011), Los Contratos Colectivos de Proteccion Patronal en Mexico. Friedrich-Ebert-Stiftung (FES). México.
De la Dehesa G. (2007) “Are developing countries engaging in ‘social dumping’?,” Online, http://voxeu.org/index.php?q=node/213. Accessed January 20, 2015.
Dussel Peters, Enrique (2017) Efectos del TPP en la economía de México: impacto general y en las cadenas de valor de autopartes-automotriz, hilo-textil-confección y calzado." Cuadernos de Trabajo 4. Centro de Estudios Internacionales Gilberto Bosques e Instituto Belisario Domínguez, Senado de la República.
Kynge, James, 2015, “Mexico steals a march on China in car manufacturing,” Financial Times, April 21, Emerging Markets, FDI, Online, https://www.ft.com/content/0bc33e06-e81e-11e4-894a-00144feab7de, Accessed March 19, 2014.
Garavito Elías, Rosa Albina (2013) Recuperar el salario real: un objetivo impostergable ¿Cómo lograrlo? Fundacion Friedrich Ebert. Mexico, Analisis No 9.
Economic Commission for Latin America (ECLAC) (2008). Latin America and the Caribbean in the World Economy. 2008 Trends. United Nations.
Muller, Joan, 2016. “America’s Car Capital Will Soon Be … Mexico,” Forbes. Autos, August 20. Online, https://www.forbes.com/sites/joannmuller/2014/08/20/americas-car-capital-will-soon-be-mexico/#18ed986948ce. Accessed September 10, 2016.
Herrera-Echeverri, Hernán, Jerry Haar, Alexander Arrieta Jiménez, Manuel Araújo Zapata (2015). “Devaluation, competitiveness and new business formation in emerging countries,” Journal of Developmental Entrepreneurship, Vol 20, No 3.
International Labor Office (ILO) (2017), “Fundamental ILO Conventions.” Online, http://www.ilo.org/global/lang--en/index.htm. Accesed August 10, 2017.
Instituto Nacional de Estadistica, Geografia e Informatica (INEGI)-Asociacion Mexicana de la Industria Automotriz (AMIA) (2016), Estadisticas a Proposito de la Industria Automotriz. Mexico.
INEGI (2015), La Industria Automotriz en Mexico. Estadisticas Sectoriales. Mexico.
INEGI (2007-2015) Encuesta Mensual de la Industria Manufacturera.
Interamerican Development Bank (IDB) (2017). Countries at a glance, online,https://data.iadb.org/IADBOpenDataVisuals/en/country-at-a-glance.html?country=MEX. Accesed May 10, 2017.
Keynes, M. (1930) The General Theory of Employment, Interest and Money. Stellar Classics.
KPMG (2016), Competitive Alternatives. KPMG’s guide to international business locations costs. Focus on Canada. Edition, online, competitivealternatives.com. Accesed February 14, 2017.
KPMG (2012), Competitive Alternatives. KPMG’s Guide to International Business Location Costs. Edition, online, competitivealternatives.com. Accessed Septmber 12, 2013.
Organization for Economic Cooperation and Development (OECD) (2017), Taxing Wages 2017. Tax Policy Analysis.
Organization for Economic Cooperation and Development (OECD). 2013, Indicators of Employment Protection, online, http://www.oecd.org/els/emp/oecdindicatorsofemploymentprotection.htm. Accessed July 22, 2017.
Office of the United States Trade Representative, July, 17 2017, Summary of Objectives for the NAFTA Renegotiation. Executive Office of the President.
Osler, Riyas Datu et al., (August 15, 2017): “Canada unveils its top priorities for NAFTA renegotiations,” online, https://www.osler.com/en/resources/cross-border/2017/canada-unveils-its-top-priorities-for-nafta-renego. Accessed July 28. 2017.
Polanyi, Karl (1989), The Great Transformation. Madrid La Piqueta.
Promexico. Tratados de Comercio. www.promexico.mx/es/mx/tratados-comerciales
Reuters, January 9, 2017, “Fiat Chrysler may end Mexico output if Trump tariff too high: CEO.” Nick Karey, online, http://www.reuters.com/article/us-usa-autoshow-fiat-chrysler/fiat-chrysler-may-end-mexico-output-if-trump-tariff-too-high-ceo-idUSKBN14T1UG. Accessed January 15, 2017.
Ruiz Duran, Clemente (2016), Desarrollo y Estructura de la Industria Automotriz en Mexico. Friedrich-Ebert-Stiftung (FES). México.
Schumpeter, JA (1934); The Theory of Economic Development: An Inquiry Into Profits, Capital, Credit, Interest, and the Business Cycle. Transaction Publishers.
Secretaria de Trabajo y Previsión Social: Contrato Colectivo de Trabajo: Nissan Civac, http://contratoscolectivos.stps.gob.mx/RegAso/legal_contratos.asp. Accessed March 05, 2017.
_____. Contrato Colectivo de Trabajo: VW puebla, http://contratoscolectivos.stps.gob.mx/RegAso/legal_contratos.asp.
Accessed March 05, 2017
_____. Contrato Colectivo de Trabajo: Chrysler Toluca, http://contratoscolectivos.stps.gob.mx/RegAso/legal_contratos.asp. Accessed March 05, 2017
_____. Contrato Colectivo de Trabajo: Chrysler ramos Arizpe, http://contratoscolectivos.stps.gob.mx/RegAso/legal_contratos.asp. Accessed March 05, 2017
_____. Contrato Colectivo de Trabajo: General Motors Toluca: http://contratoscolectivos.stps.gob.mx/RegAso/legal_contratos.asp. Accessed March 05, 2017.
_____. Contrato Colectivo de Trabajo: Ford Hermosillo: http://contratoscolectivos.stps.gob.mx/RegAso/legal_contratos.asp. Accessed March 05, 2017
_____. Contrato Colectivo de Trabajo: Toyota Tijuana,: http://contratoscolectivos.stps.gob.mx/RegAso/legal_contratos.asp. Accessed March 05, 2017
_____. Contrato Colectivo de Trabajo: Ford Cuautitlán: http://contratoscolectivos.stps.gob.mx/RegAso/legal_contratos.asp. Accessed March 05, 2017
_____. Contrato Colectivo de Trabajo: General Motors Ramos Arizpe: http://contratoscolectivos.stps.gob.mx/RegAso/legal_contratos.asp. Accessed March 05, 2017
_____. Contrato Colectivo de Trabajo: Chrysler Saltillo: http://contratoscolectivos.stps.gob.mx/RegAso/legal_contratos.asp. Accessed March 05, 2017
_____. Contrato Colectivo de Trabajo: Honda El Salto: http://contratoscolectivos.stps.gob.mx/RegAso/legal_contratos.asp. Accessed March 05, 2017.
_____. Contrato Colectivo de Trabajo: Nissan Aguascalientes: http://contratoscolectivos.stps.gob.mx/RegAso/legal_contratos.asp. Accessed March 05, 2017.
_____. Contrato Colectivo de Trabajo: General Motor San Luis Potosi: http://contratoscolectivos.stps.gob.mx/RegAso/legal_contratos.asp. Accessed March 05, 2017.
The Conference Board, 2017, International Labor Comparisons, online, https://www.conference-board.org/ilcprogram/. Accessed June 15, 2017.
The International Organization of Automobile Manufacturers (OICA). Production Statistics. Onlinr, http://www.oica.net/, March 15, 2017.
Van Roozendaal G. (2002) Trade unions and global governance: the debate on a social clause, London, Continuum.
UNIFOR (2017). Unifor-UAW statement on auto and the re-negotiation of NAFTA
posted 13-July-2017. Online http://www.bilaterals.org/?unifor-uaw-statement-on-6auto-and&lang=en. Accessed July 20, 2017.
United States Census Bureau (2017). U.S. Census Bureau Economic Indicators, online, https://www.census.gov/. Accesed April 25, 2017.
Weisbrot, Mark, Stephan Lefebvre, and Joseph Sammut (2014), “Did NAFTA Help Mexico? An Assessment After 20 Years.” Center for Economic and Policy Research. Washington, DC.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Copyright (c) 2019 Alex Covarrubias