Congress soon will vote on the United States-Mexico-Canada Agreement (USMCA), a landmark trade pact finalized by all three nations last November. This deal is a historic victory for workers. It would guarantee fairer pay through wage requirements, ensure safe working environments, and strengthen workers’ rights to unionize for better benefits.
Despite these labor-friendly provisions, my fellow Democrats have been slow to endorse the USMCA, but their hesitation is unwarranted. Ratifying the agreement is the surest way to improve the lives of workers across North America.
Just look at how the deal helps autoworkers: To qualify for tariff-free treatment, the USMCA requires 40 percent to 45 percent of a vehicle’s parts to be manufactured by North American workers earning at least $16 an hour. This provision would help deter auto companies from shutting down U.S. and Canadian factories and outsourcing production to Mexico, where autoworkers make just $3.14 an hour on average.
The USMCA also incentivizes automakers to shift production from Europe and Asia to North America. Currently, under NAFTA, vehicles qualify for tariff-free treatment if 62.5 percent or more of their value comes from North America. The USMCA would raise that requirement to 75 percent. This would encourage multinational auto manufacturers to build more vehicles at U.S. factories and source more parts from American suppliers, rather than import those parts from abroad.
According to a recent survey by LevaData, nine in 10 U.S. auto executives agree that the trade deal would increase auto manufacturing across North America. And 53 percent of those polled said it would provide a net gain for both workers and consumers.
The USMCA also helps labor unions expand their presence in Mexico by requiring the country to give all workers the right to organize, join the union of their choice and engage in collective bargaining activities.
The USMCA protects all workers, regardless of industry. The deal, for instance, compels the U.S., Mexico and Canada to protect migrant workers from exploitative practices and cracks down on gender discrimination in the workplace.
Moreover, the USMCA strictly prohibits all forms of compulsory labor, including child labor, within the three countries.
By swiftly ratifying the USMCA, the lives of workers both at home and abroad can be improved. While the U.S. already has some of the strongest worker protections in the world, the USMCA makes these strong protections a North American standard.