A maquiladora (or maquila) is a factory that imports materials and equipment on a duty-free and tariff-free basis for assembly or manufacturing and then re-exports the assembled product usually back to the originating country.

There were many maquiladoras located in Mexican towns along the United States–Mexico border, but they are now located in more areas all over Mexico. The main use of these assembly plants is to assemble imported parts. These businesses must work under the Maquila Decree, requiring all products to be exported from Mexico. Maquiladoras can be 100% foreign-owned (usually by U.S. companies). Using maquiladoras is an example of transnational operations.

The establishment of Maquila Decree was largely due to the end of the U.S. Bracero Program, which allowed Mexican immigrants to find temporary agricultural work in the United States. The end of the Bracero Program increased the unemployment rate in the border region. Mexican officials created the Maquila Decree in order to alleviate this problem.

The establishment of a Maquila Decree was mainly due to efforts made by the Tijuana Maquila Association, to the Mexican Government in 1970. This action alleviated unemployment among a young population in need of work. The hiring age for maquila workers was 16 years to 24 years of age.

See also

• Dominican Republic-Central America Free Trade Agreement
• Economy of Mexico
• Free Trade Area of the Americas
• Free Trade
• Globalization
• List of international trade topics
• Colonias

External links

• NAFTA Secretariat
• Maquila Solidarity Network
• Mexico Solidarity Network
• Hard Rock Music Video about Maquiladoras on the Internet Archive
• Article on worker-run maquiladora in El Salvador

Economy of Mexico | Economy of the United States | International trade | Mexican culture | Mexico and the United States | Spanish terms

Maquila | Maquiladora | Maquiladora | Maquiladora