TRADE AND DECENT WORK IN MEXICO´S AUTOMOBILE SECTOR: THE ROAD TRAVELLED AND THE UNCHARTERED TERRITORY AHEAD, 2005-2019

Juan Carlos Moreno-Brid (), Rosa GÓMEZ Tovar, Lizzeth GÓMEZ Rodríguez and Joaquín SÁNCHEZ Gómez

Regional and Sectoral Economic Studies, 2023, vol. 23, issue 2, 57-88

Abstract: The North American Free Trade Agreement (NAFTA) marked a turning point in Mexico's economic landscape by granting the country privileged access to the markets of Canada and the United States. This unique advantage triggered a substantial increase in Mexico's exports of manufactured goods, with a particular focus on the automotive industry. The subsequent replacement of NAFTA with the United States–Mexico–Canada Agreement (USMCA) further deepened this trading relationship. Despite the automotive industry's remarkable export performance, this prosperity has not translated into a commensurate dynamism in employment. This research investigates the employment trends within Mexico's automotive sector, analyzing both the quantity of jobs created and the progress towards decent work conditions. It is evident that while Mexico's automotive industry plays an increasingly significant role in global value chains (GVCs), it remains somewhat isolated from domestic producers. This isolation contributes to the industry's inability to catalyze robust growth in other domestic sectors, despite its export-driven success.

Keywords: Decent Work; Mexican Automobile Industry; USMCA; Value Chains; Trade Liberalization; Mexican Manufacturing. (search for similar items in EconPapers)
JEL-codes: E24 F16 J21 J81 J82 (search for similar items in EconPapers)
Date: 2023
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