The Trump administration touted its trade agreement with Mexico on Monday as a major win for organized labor and argued that its appeal to workers will ensure its approval by Congress. Union leaders were more cautious, saying that they would first have to examine the terms of the deal, which would amend the North American Free Trade Agreement.
“There has never been a trade agreement remotely as good on labor from the point of view of organized labor and Democrats, for whom that is a high priority, than this one,” said a senior administration official speaking to reporters. “These are the most forward-leaning labor provisions ever agreed to, and they can be completely enforceable. So I’m optimistic that we will get a lot of bipartisan support.”
The deal is meant to be submitted to Congress for approval in the next few days, and is expected to be voted on by November.
Teamsters leader James P. Hoffa applauded the administration’s efforts.
“We believe that the administration has taken real steps to deal with our concerns regarding cross-border trucking and highway safety,” Hoffa said in a statement, adding “there is still much work to be done.”
Other labor leaders were less certain. A joint statement from five of the top U.S. labor leaders was headlined “NAFTA negotiations on track,” but otherwise declined to pass judgment.
“We remain committed to working with the administration to get NAFTA right. Our members’ jobs depend on it. But, as always, the devil is in the details,” they said. The statement was attributed to AFL-CIO President Richard Trumka, US Steelworkers President Leo Gerard, United Autoworkers President Gary Jones, Communications Workers of America President Chris Shelton, and International Association of Machinists President Robert Martinez, Jr.
The main provision of the U.S.-Mexican agreement raised the amount of North American-made parts needed for a car or truck to be duty-free to 75 percent, up from 62.5 percent, under NAFTA. It also required that at least 40 percent of all auto content be made by workers making at least $16 an hour or its equivalent. Both changes would force auto manufacturers to move more production back into the U.S., a position long favored by labor leaders.
And Monday’s announced deal should not have come as a surprise to labor leaders. They have been regularly consulted by the Trump White House on trade issues, meeting frequently with U.S. Trade Representative Robert Lighthizer. A spokesperson for the AFL-CIO could not be reached for comment.
Free trade advocates lamented the change. “It is a bad idea,” said Bryan Riley, trade policy analyst for the National Taxpayers Union. “It drives up the cost of building cars in the U.S. It will increase the prices for consumers. It weakens NAFTA by making it less of a free trade agreement.”
[Also read: Trump says China wants trade deal, but it’s ‘not the right time’]
