North American trade pact on 3rd anniversary: Optimism is rising for U.S. and Mexican workers

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North American trade pact on 3rd anniversary: Optimism is rising for U.S. and Mexican workers
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To President Donald Trump, America's trade relationship with Mexico was intolerable. He seethed over the U.S. trade deficit and the shuttered factories in America's heartland. 'No longer,' he vowed six years ago, 'are we going to allow other countries to break the rules, to steal our jobs and drain our wealth.'

File - A man works in a shoe maquiladora or factory, in Leon, Mexico, Monday, Feb. 7, 2023. While the USMCA's broad impact has been slight, it has nevertheless been aiding workers on the ground and the main beneficiaries have been in Mexico. To President Donald Trump, America's trade relationship with Mexico was intolerable. He seethed over the U.S. trade deficit and the shuttered factories in America's heartland.

Yet while the the deal's overall impact has been slight, it has nevertheless been helping workers on the ground. It's just that the beneficiaries have so far been mostly in Mexico. Novel provisions of the pact have enhanced the ability of long-exploited Mexican workers to form unions and secure better wages and working conditions.

The former president also predicted that exports of U.S. auto parts to Mexico would rise by $23 billion. They have increased since 2020 -- but only by about $8 billion. But it's hard to tease out which economic gains can be credited to the USMCA and which happened for a variety of unrelated reasons. That is especially true in light of the unusual economic tumult of the past three years: A devastating pandemic, followed by severe labour shortages and supply chain backlogs and a resurgence of rampant inflation.

Given how it modernized North American trade, the"USMCA is a marked improvement," said Neil Herrington, the U.S. Chamber of Commerce's senior vice president for the Americas. "Border officials were worried about clearing cargo in ports and getting rid of congestion," said Daniel Ujczo, senior counsel at the law firm Thompson Hine in Columbus, Ohio."They didn't have a ton of time to deal with USMCA."'

"We took a lot of the key parts of labour reform, and we baked them directly into the trade agreement," said Josh Kagan, assistant U.S. trade representative for labour affairs."We're holding Mexico to actually implement this labour reform they've undertaken." Still, it isn't a perfect process, said Julia Quinonez, who organized an independent union at a U.S.-owned auto parts plant, VU Manufacturing, in the city of Piedras Negras, Coahuila, across from Eagle Pass, Texas. The old union joined with the company to try to bar the new union. The two sides are still struggling.

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