WASHINGTON, D.C. — The International Association of Machinists and Aerospace Workers is calling for significant changes to the United States-Mexico-Canada Agreement as the trade pact enters its mandatory six-year review, arguing that the agreement has failed to stem the loss of manufacturing jobs to Mexico.
The 600,000-member union contends that the USMCA, which replaced the North American Free Trade Agreement in 2020, has not sufficiently addressed wage disparities and other incentives that encourage companies to relocate production outside the United States.
“The agreement should not simply be extended as-is,” IAM International President Brian Bryant stated. “It must be strengthened with tougher labor standards, stronger enforcement mechanisms, improved rules of origin and meaningful measures that discourage corporations from moving jobs out of the United States and Canada in pursuit of cheaper labor.”
The review, required under the terms of the USMCA, gives the United States, Mexico and Canada an opportunity to assess the agreement’s performance and determine whether revisions are needed before it is automatically extended.
The union’s criticism echoes long-standing concerns among organized labor that North American trade agreements have accelerated offshoring and weakened domestic manufacturing employment.
Bryant argued that, despite improvements over NAFTA, companies continue to take advantage of lower labor costs in Mexico. He cited manufacturers such as Whirlpool as examples of companies that have shifted work south of the border.
“Workers are still watching their jobs leave,” Bryant stated. “The same broken incentives remain in place.”
The union is urging negotiators to use the review process to adopt measures that would strengthen labor protections, bolster enforcement provisions and encourage investment in manufacturing across North America.
Trade policy is expected to remain a contentious issue as the three countries begin reviewing an agreement that governs more than $1.8 trillion in annual trade and serves as the framework for deeply integrated North American supply chains.
The IAM represents approximately 600,000 active and retired workers in industries including aerospace, defense, airlines, shipbuilding, rail, transit, healthcare and automotive manufacturing.
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