> So exploit workers by bringing them from overseas, and treat them differently to the local laws?
OP said they would be "in US jurisdiction," and thus, presumably, subject to American labor laws. What I think they were suggesting was a visa-free zone within the U.S., which is an interesting idea.
> corporations would be in US jurisdiction but the employees could flow through with minimal overhead
It implies to me that the corporations get to be US based and reap those benefits while employees are not and can be taken advantage of.
Though I do agree with you - there’s a few experiments happening with special economic areas / designated cities in a few places (again, a few in the Middle East) to attract talented individuals and companies to whom local laws may not apply.
Your initial impression is probably an indicator of why it could probably not happen politically - it sounds off. But speaking pragmatically - the US population demographics is aging versus Mexico's still growing working age population. Just any hint of US on-shoring/supply chain/pandemic has led to US wage and consumer goods inflation.
Assuming its highly regulated with US minimum wage laws - a SEZ would be much more about arbitraging the strong US dollar/US High Cost of Living (which is strong due to the US's Tech/Finance/Trade strength leaving US manufacturer stuck) versus the more moderate Mexican peso/lower cost of living.
An employee from Mexico working at US factory would be living quite well if they could freely go back after work to living south of the border.[1]
I'd also mention the realistic alternatives to this are:
- just import finished goods from other developing countries produced under highly unknown labor or
- locate the factory fully within the US and have the undocumented employees cross the border illegally and live in precarious, unmonitored conditions hundreds of miles away from their families and exacerbating housing issues.
[1] Apartment in Matamorosa Mexico is $400 versus $1020 in McAllen, Texas
It isn't - we should be (and a lot of larger corps are) encouraging higher standards for workers in those places, and it is significantly better compared to a decade ago. Not to mention as those workers demand better wages and conditions, it suddenly starts to make economic sense to hire locally.
We should not be taking steps backwards and making that sort of behaviour acceptable, because if we do that at home - then places with already lower standards will compete by lowering theirs further.
You’ve just described Qatar, Bahrain, UAE etc.
Maybe reconsider why local labour is expensive and why it’s worth paying for.