[CTC] U.S. official circumspect about major labor demands in NAFTA

[Arthur Stamoulis]

U.S. official circumspect about major labor demands in NAFTA

POLITICO
By Megan Cassella and Adam Behsudi 
11/21/2017 06:50 PM EDT

The United States will hew closely to what Congress has mandated on labor provisions in fast track legislation as it negotiates the issue in NAFTA talks, a senior U.S. official said today at the conclusion of the fifth round of talks.

That would include making, for the first time, NAFTA's labor rules binding and enforceable through the agreement's dispute settlement system.

But the official remained circumspect about whether the administration might go above and beyond to address wage and labor standards in Mexico that many critics view as the driving force for U.S. jobs moving south of the border.

"Certainly the labor reform in Mexico is an important part of improving the environment and the structures here in Mexico," the official said. "I wouldn't say that's our plan or that exhausts the tools that we have for the range of our dialogue."

Mexico is in the midst of implementing a constitutional amendment that is aimed at making labor conciliation and arbitration boards more independent and giving workers more control over labor contracts. Critics say labor contracts are often drawn up between companies and corporate-controlled labor unions without worker input.

"Mexico is in the middle of what I consider quite historic reforms to its labor sector," the official said. "So we are certainly looking at those and certainly expect those to be a part of the regime going forward to be able to capture those in our negotiations."

Organized labor and Democratic lawmakers have warned that a rebooted agreement will not get their support unless it comprehensively addresses what they argue to be a wage-suppressing labor system.
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