{"id":2574,"date":"2019-07-19T16:50:20","date_gmt":"2019-07-19T16:50:20","guid":{"rendered":"https:\/\/griit.org\/?p=2574"},"modified":"2024-01-29T14:20:23","modified_gmt":"2024-01-29T14:20:23","slug":"what-you-need-to-know-about-labor-requirements-and-ftas","status":"publish","type":"post","link":"https:\/\/griit.org\/what-you-need-to-know-about-labor-requirements-and-ftas\/","title":{"rendered":"What You Need to Know About Labor Requirements and FTAs"},"content":{"rendered":"\n
Listen to this same blog post on our podcast at https:\/\/soundcloud.com\/griit\/what-you-need-to-know-about-labor-requirements-and-ftas<\/a><\/p>\n\n\n\n Trade deals may now begin to include a labor value content (LVC) rule. Well, at least one trade deal includes the LVC rule. That is the US-Mexico-Canada Agreement (USMCA). Whereas NAFTA set the precedent for many of the trade deals that the United States negotiated afterward, this new requirement in the USMCA could possibly appear in later trade deals.<\/p>\n\n\n\n The USMCA was signed in 2018 and was ratified by Mexico exactly one month ago. The United States and Canada still have to ratify the USMCA. <\/p>\n\n\n\n The LVC rule within the USMCA will impact the automobile industry. In order for automobiles to enjoy the duty-free benefits of the trade agreement, 40 percent of passenger vehicles and 45 percent of a pick-up or cargo vehicle must be manufactured by hourly workers paid a minimum of $16 per hour. <\/p>\n\n\n\n Labor was a side deal to the North American Free Trade Agreement. Furthermore, the labor side deal was criticized for being weak on enforcement<\/a>. Now, labor is included in the USMCA itself.<\/p>\n\n\n\n