Maquiladora

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 Latin America. The main use of these assembly plants is to assemble imported parts. Maquiladoras can be 100% foreign-owned (usually by U.S. companies) in most countries. Using maquiladoras is an example of offshoring.

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 programme 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.

Maquiladora is also a B Side recorded by the British alternative rock band, Radiohead. The track appears on the single release for High and Dry which was released in February of 1996.

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
• Green Plastic-Radiohead Fan Site
• Article on worker-run maquiladora in El Salvador