The Lessons of Mexico's Maquiladoras: Where Free Trade and Labor Rights Compete Daniel Lederman and Julia Oliver - America Economia/Worldcrunch
go to original April 22, 2013

A "maquiladora" in Mexico (Guldhammer)

CIUDAD JUAREZ – A maquiladora, or maquila, is an offshoring factory or manufacturing plant operated under U.S.-Mexico free trade agreements to encourage the development of industry in Mexico.

Mexico allows materials used in maquilas to enter duty-free, provided the finished product is then immediately exported out of Mexico. The U.S. in turn charges these products a much lower tariff than products from other countries. Companies using this labor arrangement include Levi’s and Siemens.

The world is as interconnected as ever, and there is no better place to see that than the U.S.-Mexico border. Lined with factories, the border between both countries has become less clear because of NAFTA (North American Free Trade Agreement), international production chains and other economic and social links.

On the Mexican side of the border, almost 3,000 factories import components and raw materials. Workers assemble the products – most of the finished goods are destined for the U.S. market.

The big question is: does this benefit Mexican workers?

Read the rest at Worldcrunch

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