The USMCA and the third generation of labor arrangements. Probable Scenarios for Regional Labor and Industry.

  • Alex Covarrubias V. El Colegio de Sonora

Abstract

Under the America first precept, Trump pushed for a trade agreement that would curb the flight of jobs and investment because of low wages in Mexico. The new treaty increased the rule of regional content in the automotive industry and introduced a chapter on labor rights with unprecedented control mechanisms. These rules are so unprecedented that they constitute a new generation -the third, and most complete and binding- of labor rules introduced by the United States in its trade agreements. With these elements, The US is expecting net profits in an industry as strategic as as the automotive industry. Andrés Manuel López Obrador substantially modified the labor law and has increased wages, encouraging the existence of a new model of employment relations. This article revises several scenarios for assessing whether these expectations will be met. It argues that, in opposition to expectations, it will continue to attract jobs and investments to Mexico's AI, further completing the emptying and deterritorialization of the US industry.

Author Biography

Alex Covarrubias V., El Colegio de Sonora

* Profesor Investigador de El Colegio de Sonora. Coordina la Red Innovación y Trabajo en la IAM (RedItiam). Es miembro del Comité Directivo de la Red Internacional para el Estudio de la Industria Automotriz y sus Empleados (GERPISA, Paris) e Investigador Asociado del Centro de Investigación sobre Políticas para la Industria Automotriz de Canadá.

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Published
2021-01-29
How to Cite
Covarrubias V., A. (2021). The USMCA and the third generation of labor arrangements. Probable Scenarios for Regional Labor and Industry. Norteamérica, Revista Académica Del CISAN-UNAM, 16(1). https://doi.org/10.22201/cisan.24487228e.2021.1.470
Section
CONTEMPORARY ISSUES