The International Association of Machinists and Aerospace Workers (IAM Union) participated in a recent briefing with labor experts and Congressional allies to discuss priorities for the upcoming review of the U.S.-Mexico-Canada Agreement (USMCA). The event aimed to inform Congressional staff and leaders about ongoing concerns related to labor standards, wage disparities, and enforcement issues under the current trade framework.
Speakers at the briefing emphasized that while USMCA made improvements over its predecessor NAFTA, significant challenges remain. They highlighted persistent wage gaps between countries, weak enforcement mechanisms, and increased foreign exploitation as factors that continue to threaten U.S. jobs.
Key labor priorities presented included strengthening Rules of Origin provisions to prevent offshoring of jobs, closing loopholes that enable Chinese companies to use Mexico for transshipment and final assembly, expanding tools like the Rapid Response Mechanism for better labor enforcement, narrowing wage gaps that incentivize companies to relocate jobs abroad, and protecting strategic manufacturing sectors such as aerospace, automotive, steel, and aluminum.
Peter Greenberg, IAM Union International Affairs Director, focused on risks facing the aerospace sector. He stated: “One of our great fears has been an interruption of the aerospace supply chain, particularly because it is very closely tied between the U.S. and Canada.” Greenberg also addressed concerns about China’s role in exploiting USMCA loopholes: “China is using Mexico as a transshipment location,” he said. “It allows goods to be repackaged and essentially enter the United States tariff-free.”
Greenberg further warned that Mexico could become a final assembly point for Chinese aerospace products. This development could impact jobs connected with major manufacturers such as Boeing and Airbus as well as U.S.-based jet engine production. He referenced China’s expansion into commercial aviation through projects like the COMAC C919 aircraft and noted how Belt and Road financing may intensify competitive pressures on North American industry.
Other speakers at the event included Representative Linda Sánchez (D-Calif.), Ranking Member of the House Ways and Means Trade Subcommittee; Riley Ohlson from AFL-CIO; Roy Houseman from United Steelworkers; and Christopher Zatratz from United Auto Workers.
