Trade Issues

NAFTA's Labor and Environmental Provisions

Labor and environmental provisions written into the North American Free Trade Agreement (NAFTA) between the United States, Canada and Mexico four years ago have had little or no impact, according to international trade specialists. These provisions were included in the pact to mollify trade unionists and environmental activists; but few mechanisms are available to enforce them.

The labor provision, termed the North American Agreement on Labor Cooperation (NAALC), established panels in each of the three NAFTA countries to hear complaints on worker abuses.

  • To date, the panels have reviewed only six cases -- five in Mexico and one in the U.S. -- and have restricted themselves to fact finding.

  • Critics say the NAALC is merely an apparatus for holding public meetings which focus on the governments' failure to enforce existing labor codes, rather than the activities of employers and unions.

Similarly, NAFTA's Commission on Environmental Compliance has a thin track record.

  • After more than three years and a total of 11 complaints filed, only one has resulted in an actual investigation.

  • That involved construction of a cruise-ship pier off Cozumel in Mexico, and a charge that offshore reefs were damaged.

  • The results of the investigation haven't been released and may be kept sealed pending a vote by commission members.

Critics say such side issues have no place in international trade agreements. Moreover, the mechanisms are demonstrably useless and should be left out of future trade agreements.

Source: Joel Millman, "Nafta's Do-Gooder Side Deals Disappoint," Wall Street Journal, October 15, 1997.

Home |  Support Us |  All Issues |  Social Security |  Debate Central |  Contact Us

Dallas Headquarters: 12770 Coit Rd., Suite 800 - Dallas, TX 75251-1339 - 972/386-6272 - Fax 972/386-0924
Washington Office: 601 Pennsylvania Ave. NW, Suite 900 South Building - Washington, DC 20004 - 202/220-3082 - Fax 202/220-3096
© 2001 NCPA