Mexico and the TPP

The article “TPP in Focus: Why Mexico’s Labor Standards Matter for TPP” (http://democrats.waysandmeans.house.gov/blog/tpp-focus-why-mexico%E2%80%99s-labor-standards-matter-tpp) review the “Productivity Paradox” and its potential implications in the Trans-Pacific Partnership trade agreement. The Productivity Paradox, or “high productivity poverty,” is an increase in quantity of goods manufactured in conjunction with a decline in employee wages. Professor Harly Shaiken of the University of California shares that “between 1993 and 2011, real wages for Mexican manufacturing workers fell nearly 20 percent while productivity rose nearly 80 percent.” This Productivity Paradox is still a major outstanding issue in the TPP. In respect to what the article states President Obama should do, “meaningful changes need to be made, commitments need to be secured, and implementation needs to take place as part of the TPP that will address and improve Mexico’s labor standards.” With Mexico playing a large part in the auto sector, how could the automobile industry be affected if no agreement is reached? How is Mexico and its labor laws affecting other countries in similar situations? Is the overall TPP agreement compromised because of this?

One thought on “Mexico and the TPP

  1. Hay que pagar a los empleados! Me gusto much su articulo. Tengo que visitar a Mexico para que vea los condiciones donde este gente trabaja.

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