Higher Mexican wages complicate push for non-China supply chains

GM, Panasonic among companies seeing big increases in labor costs

20230523N GM Silao

Activists hold signs outside a General Motors factory in Silao in February 2022. Its union secured the first double-digit wage hike in years this year. © Reuters

KOSUKE SHIMIZU, Nikkei staff writer

MEXICO CITY -- Three years after a revamped North American trade pact took effect, demands by labor unions and stricter standards for tariff relief are squeezing manufacturers from Japan and elsewhere that have set up shop in Mexico.

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