Will NAFTA 2.0 Really Boost Mexican Wages?

Will NAFTA 2.0 Really Boost Mexican Wages?

NAFTA is no more. The North American Free Trade Agreement has a new name — the United States-Mexico-Canada Agreement, or USMCA — and its rules have been updated and revamped.

For Mexico, there's one rule in particular that gives workers hope higher wages are coming.

It says that 40 percent of a car must be made in a plant where workers make at least $16 an hour in order to avoid U.S. import tariffs. That would mean a fivefold boost to the average Mexican autoworker's wage of $3.14 an hour .

But while that . . .