Vague Mexico Wage Pledge Clouds Free Trade Accord
As they try to make the case for Congressional approval of a free trade agreement with Mexico and Canada, President Clinton and other supporters repeatedly say the pact will raise minimum wages in Mexico and reduce the country's ability to undercut businesses north of the border with cheap labor. But by focusing on how minimum wages might rise, the Clinton Administration has put itself in a somewhat awkward position because that particular pledge is not found anywhere in the 2,000-page North American Free Trade Agreement it is meant to support. Nor is it in the special side agreements to the pact, or in Mexican labor law. A Promise by Salinas Rather it is a personal promise made by President Carlos Salinas de Gortari of Mexico that this country's minimum wage -- which can go as low as $4 a day, depending on the type of work -- will be increased in tandem with increases in worker productivity.
