Even in the sugar industry, it is possible that Mexico will remain a sizable net importer. And if it succeeds in generating economic and income growth of the sort projected in Mexico, it can help create the wherewithal to expand remedial environmental efforts. It is noteworthy that one of the sectors in which small U.S. companies are leading global competitors is in environmental technologies, such as wastewater treatment. Change is clearly necessary. Existing environmental problems in the border region are especially grave in the maquiladora industries where both government and industry have made insufficient investments in water treatment and hazardous waste disposal facilities.
Labor standards are the subject of the second side-agreement negotiations.
This will reduce the incentive of U.S. firms to seek lower wage levels by relocating to Mexico. A labor side-agreement, like its environmental counterpart, can help to raise occupational, health and safety standards to U.S. levels, and compel U.S. firms to adopt similar standards in both countries. The third side-agreement under discussion revolves around possible increases in imports from Mexico in commodities currently protected at the border. The most important is sugar. Currently, Mexican sugar consumption outpaces production, ranking among the highest levels in the world, at 102 pounds per capita.