LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Business News » World News

Sharp differences over labor surface at NAFTA talks in Mexico

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
Updated: Mon, Sep 04, 2017
10:38 am
Reuters
RELATED NEWS
Expert Views: BIG! India's retail inflation eases to 4.59% in December Expert Views: BIG! India's retail inflation eases to 4.59% in December
Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands
Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED
Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED    Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED
Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY! Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY!

Tensions over sharp differences in pay between Mexican workers and their Canadian and U.S. counterparts surfaced on Sunday as negotiators discussed labor market rules in talks to overhaul the North American Free Trade Agreement.

Canada`s biggest private-sector union said NAFTA should be scrapped if Mexico cannot agree to better labor standards, clashing with Mexican business leaders who argued that workers rights were a matter for each country to resolve internally.

Mexican political and corporate leaders firmly resist demands to bring wages into line with U.S. and Canadian levels, arguing the big cost advantage the country enjoys over richer peers should decrease as economic development advances.

Labor union leaders in the two wealthier nations say laxer labor standards and lower pay in Mexico have swelled corporate profits at the expense of Canadian and U.S. workers, making resolution of the issue a major battleground of the NAFTA talks.

Jerry Dias, national president of Canadian union Unifor, said NAFTA had been a "lousy trade agreement for working-class people" and that the union was pushing his government to walk away from the talks if it could not secure them a better deal.

"If labor standards aren`t a part of a trade deal, then there shouldn`t be a trade deal," Dias told reporters in Mexico City on the sidelines of a second round of negotiations to update the 1994 trade agreement among the three countries.

Worker pay is a sensitive issue in Mexico, a country riven by sharp inequality and which has struggled for years to alleviate poverty, which affects well over 40 percent of the population.

Bosco de la Vega, head of Mexican farm lobby, the National Agricultural Council, said more trade, not intervention in labor markets, was the best way for the region to grow economically.

"Mexico can`t interfere in the labor market issue in the United States and Canada. We ask the same: that they don`t interfere in these matters," he told reporters at the talks.

Mexican business leaders argue that integrating Mexico into North American supply chains has made the entire region more competitive. Recent studies have shown, however, that wages in Mexico have experienced significant downward pressure.DEAL BREAKER?

Given Mexico`s higher inflation rates, wages in that country are lower now in real terms than when NAFTA took effect, according to a report published last month by credit rating agency Moody`s.

From 2001 to 2015, Mexican hourly wages in U.S. dollars grew only 9 percent, less than in the United States and far below the 120 percent increase in Brazil, said the Moody`s report.

Some Mexican private-sector negotiators have described the labor market as a potential deal breaker in the talks, although there is a growing consensus on the need to improve pay.

Most formally employed workers earn significantly more, but the statutory minimum wage is a mere 80 pesos a day ($4.49).

Federico Serrano, head of Mexican exporters` lobby Index, said a recent survey showed average pay in the manufacturing sector was three to four times higher than the minimum wage.

But workers in Mexico`s auto industry, the main source of the country`s $64 billion goods trade surplus with the United States - a key irritant to U.S. President Donald Trump - earn far less than their American counterparts. According to the Center for Automotive Research in Ann Arbor, Michigan, Mexican auto workers earn average hourly wages of less than $6 excluding benefits, compared with about $28 in the United States.

Steve Verheul, Canada`s chief NAFTA negotiator, told reporters his country would defend its interests at the talks, and when asked about the need for tougher labor standards, said: "It`s an important issue."

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Expert Views: BIG! India's retail inflation eases to 4.59% in December Expert Views: BIG! India's retail inflation eases to 4.59% in December
Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands
Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED
Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED    Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED
Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY! Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY!

LATEST NEWS

Stocks to Buy: Tata Motors stock on a roll, gains 6 pct on Friday; Know why trends to remain bullish

7th Pay Commission latest news: Salary up to Rs 2.08 plus DA, HRA; check 7th CPC details in Central Government at upsconline.nic.in

PUBG Mobile India launch date: Rumours rage with this announcement; will the Battle Royale Game make comeback? Check latest report

Citi on Mutual Funds: UTI AMC is top pick; sector may deliver Healthy (15%) AUM / profit growth likely

Mutual Fund NFO: PGIM India Balanced Advantage Fund launched; minimum investment Rs 5000; know last date of offer

Samsung Galaxy 21, Galaxy S21+ and Galaxy S21 Ultra launched | Check Price, Camera, Specifications, Pre-booking and Cashback offers

Viral video: Leopard ''plays'' with motorists in Himachal, raises concern

Anil Singhvi reveals when to apply buying strategy in falling markets | Know all about 2:30 factor

South star Vijay's 'Master' movie to get Hindi remake

HDFC Securities highlights that 14563 and 14256 is the resistance / support for the Nifty in the near term

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved