Very soon the new rules under the reworked NAFTA will be introduced. According to the sources, the North American Free Trade Agreement stipulates that a certain amount of automotive production must be carried out in areas paying higher salaries.
Setting such wage requirements for the auto industry under the North American Free Trade Agreement could benefit the United States and Canada, whose unions say that lower Mexican pay has caused a drift in manufacturing capacity to Mexico. The U.S. plan aims to explore what percentage of output could be in areas paying higher salaries, and at what levels of pay the plan could be targeted, said one of the two sources, who spoke on condition of anonymity.
Mexico's government and its NAFTA partners were all analyzing the U.S. idea. The news follows a week in which hopes have risen that the United States, Mexico, and Canada could be closer to brokering the agreement on one of the thorniest issues surrounding renegotiation of NAFTA -- content levels for the auto industry.
