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Mémoire
Bachelor thesis

The implication of the new labor clauses in the USMCA on labor market and trade between the United States, Mexico and Canada

SONAR|HES-SO

    2020

76 p.

Mémoire de bachelor: Haute école de gestion de Genève, 2020

English The North American continent has implemented different free trade agreements throughout the years. From the Canadian-United States Free Trade Agreement (CUSFTA) reached in 1989, between Canada and the United States and quickly replaced by the North American Free Trade Agreement (NAFTA) in 1994 with the addition of Mexico to the agreement. After 26 years of existence and divergent opinions about its success or not, NAFTA was replaced by the United States – Mexico – Canada Free Trade Agreement (USMCA) in July 2020. This bachelor thesis aims at developing an understanding of the current knowledge regarding the labor clauses between NAFTA and USMCA and analyze the evolution of the labor markets and trade relation between the Parties. Moreover, and throughout defined indicators, this bachelor thesis will compare the labor and economic differences within the region and identify the key challenges faced by North America during the implementation of these regional free trade agreements. The first part of this research paper will present an overview of NAFTA and its laborrelated side-agreement, as well as an overview of USMCA, the Chapter 23rd, the Annex 23-A, a new dispute settlement mechanism and the increased labor value content rule. Since the clauses stated in this chapter are being addressed to the member states, this bachelor thesis will study what are the new challenges of the Annex 23-A and how the Mexican government is establishing new institutions that will innovate the dispute resolution on labor-related matter. Further than increase on trade and investments in the region, the findings show that the renegotiation enhanced the social aspect of the agreement which principal objective is to set on an equal footing the labor regulations in each country’s legislation. Furthermore, this bachelor thesis will discuss what are the main expected effects on labor market and trade after the implementation of USMCA and understand how the new labor chapter may impact industries located in those countries. Finally, a case study will illustrate the current challenges of the Mexican agricultural sector with regards to the working conditions, migration pattern, forced labor and child labor.
Language
  • English
Classification
Economics
Notes
  • Haute école de gestion Genève
  • International Business Management
  • hesso:hegge
License
License undefined
Identifiers
  • RERO DOC 329852
Persistent URL
https://folia.unifr.ch/global/documents/315134
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