New NAFTA labor standards may be difficult to enforce
As part of the ongoing renegotiation of the North American Free Trade Agreement, the United States and Mexico have tentatively agreed to new higher labor standards. One provision that has automakers’ attention requires 40-45 percent of a car be made by workers earning at least $16 per hour. The goal is to incentivize car companies to keep more production in the United States, where wages meet the standard. But enforcing the rule may be complicated.
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