A maquiladora ([makilaˈðoɾa]), or maquila (IPA: [maˈkila]), is a company that allows factories to be largely duty free and tariff-free. These factories take raw materials and assemble, manufacture, or process them and export the finished product. These factories and systems are present throughout Latin America, including Mexico, Nicaragua, and El Salvador. Specific programs and laws have made Mexico’s maquila industry grow rapidly.
From 1942-1964, the Bracero Program allowed men with farming experience to work on US farms on a seasonal basis, and its end ushered in a new era for the development of Mexico. The Border Industrialization Program (BIP) began in 1965 and allowed for a lowering in restrictions and duties on machinery, equipment and raw materials. Before this program, PRONAF, a national border program for infrastructure developments like building roads, parks, electricity, water, building factories, and cleaning up border cities, helped to improve situations along the US-Mexico Border. With BIP, foreign firms were able to use factories built under PRONAF to import raw materials and export goods for a cheaper cost than in other countries. One of the main goals of the Border Industrialization Program was to attract foreign investment.
In 1989, the federal government put in place specific procedures and requirements for maquilas under the “Decree for Development and Operation of the Maquiladora Industry”. After the Mexican debt crisis of 1980 (see Latin American debt crisis), the economy liberalized and foreign investment increased. Factory jobs began to leave central Mexico, and workers followed the jobs from central Mexico to the maquilas in the north and on the border. In 1985, maquiladoras overtook tourism as the largest source of foreign exchange, and since 1996 they have been the second largest industry in Mexico behind the petroleum industry.
With the introduction of NAFTA in 1994, Northern Mexico became an export processing zone. This allowed multinational corporations from the US to produce products cheaply. Corporations could use a maquila to import materials and produce a good more cheaply than in the US by paying Mexican laborers lower wages and paying less money in duties. Mexicans work for approximately one-sixth of the U.S. hourly rate. During the five years before NAFTA, maquila employment had grown at a rate of 47%; this figure increased to 86% in the next five years. The number of factories also increased dramatically. Between 1989 and 1994, 564 new plants opened; in the five years following, 1460 plants opened. However, the maquiladora growth is largely attributable to growth in US demand and devaluation of the peso, not NAFTA itself. In the 1970s, most maquiladoras were located around the Mexico–United States border. By 1994, these were spread in the interior parts of the country, although the majority of the plants were still near the border.
Recent research indicates that the maquiladora industry affects U.S. border city employment in service sectors. Although the maquiladora industry suffered due to the early 2000s recession, maquiladoras constituted 54% of the US-Mexico trade in 2004, and by 2005, the maquiladora exports accounted for half of Mexico's exports. In the 2000s, the maquila industry faced competition due to rise of other countries with availability of cheap labor, including Malaysia, India, and Pakistan. The biggest threat came from China's Special Economic Areas.
During the later half of the sixties, maquiladora industries rapidly expanded geographically and economically and by 1985, had become Mexico's second largest source of income from exports, behind oil. Since 1973, maquiladoras have also accounted for nearly half of Mexico's export assembly. Between 1995 and 2000, exports of assembled products in Mexico tripled, and the rate of the industry's growth amounted to about one new factory per day. By the late twentieth century, the industry accounted for 25 percent of Mexico's gross domestic product, and 17 percent of total Mexican employment.
Since globalization and physical restructuring have contributed to the competition and advent of low-cost offshore assembly in places such as China, and countries in Central America, maquiladoras in Mexico have been on the decline since 2000. According to federal sources, approximately 529 maquiladoras shut down and investment in assembly plants decreased by 8.2 percent in 2002 after the imposition of countervailing duties on Chinese products, not available in North America, that were part of the electronics supply chain. Despite the decline, over 3,000 maquiladoras still exist along the 2,000 mile-long United States–Mexico border, providing employment for approximately one million workers, and importing more than $51 billion in supplies into Mexico. Research indicates that maquiladoras' post-NAFTA growth is connected to changes in Mexican wages relative to those in Asia and in the United States, and to fluctuations in U.S. industrial production. As of 2006, maquiladoras still accounted for 45 percent of Mexico's exports. Maquiladoras, in general, are best represented among operations that are particularly assembly intensive.
Women entered the labor force in Mexico in large numbers in the latter half of the 20th century. Devaluations of the peso in 1982 and 1994 pushed many Mexican women into the labor force. Between 1970 and 1995, 18% more women were part of the working force, and many of these women were working in maquila factories. Women looked for work in factories because they could get jobs with few credentials and receive on the job training. Men working in maquilas were given positions of supervision, management, engineers, and technical jobs, while women were relegated to low-skill jobs. Young women tended to be hired more often than older women, but it depended on the circumstances of the job and type of factory. However, young single women often ended up in factories with better working conditions, like the electronics plants ,while older women and mothers worked in more dangerous apparel factories.
Poverty is a key factor that motivates women to work in maquiladoras. The minimum wage set by the Mexican government is barely enough to help sustain a family even with both parents working. The minimum wage "buys only about a quarter of the basic necessities that are essential for a typical worker’s family". Maquilas pay at much higher rate than the minimum wage in most markets since there is a lot of competition for the best workers, and workers will not work without transportation and other bonuses. The 2015 minimum wage was 70.1 pesos per day in Tijuana (minimum wages vary by zone and worker classification) or about $0.55 per hour at the current exchange rate of 16 pesos per dollar, while most entry level positions in maquilas payed closer to $2 per hour including bonuses and 25% being payed to Social Security, housing, and retirement. Even in maquila factories, wages are still very low and in many families the children are encouraged to start working at an early age to support the family. In some maquiladoras, workers are cut and their responsibilities are given to a single worker. These workers are not given a higher pay, and are expected to maintain their output without a decrease in quality. They often work involuntary overtimes and are often not paid for their extra labor.
Hiring practices discriminate against women. Women's reproductive rights are violated due to involuntary pregnancy tests and forced resignations based on pregnancies. Female applicants are made to take pregnancy tests and are only hired if not pregnant, and women that become pregnant while working at maquila factories are given more strenuous tasks and forced to work unpaid overtime to influence them to resign. The Humans Rights Watch wrote a report in 1996 about the failures of the government to address this issue despite the fact that pregnancy testing violates Mexican federal labor law. These practices have continued into the 21st century. Once on the job, many women face sexual harassment by supervisors and find no help from human resources.
Many women are injured in maquilas. Intense work pace and pressure on high production leads to injuries including upper back, neck, and shoulder pain. Many maquilas do not report accidents and workers are not compensated for injuries received on the job. Workplace hazards include toxic chemicals, and workplaces lack health and safety practices like ventilation and face masks.
Labor unions exist in maquiladoras, but many are charro unions, which are government supported and not in the interest of the worker. Official unions discredit maquiladora workers by calling them “agitators”. Workers who complain can be fired and blacklisted from other jobs . Many contracts are only for a few months, allowing companies to have a high turn-over rate in which workers never have the chance to organize for their rights. Many tried to organize independent unions, but often failed. In 1993, the Mexican labor federation, the Authentic Labor Front, and the United Electrical Workers worked together to improve conditions at the General Electric factory, but failed in the loss of an election. The Center for Labor Studies (CETLAC) was opened in the mid 1990s and worked to educate workers about their rights and activism decreased in light of violence against women. In Juarez, between 1993 and 2005, more than 370 women were murdered. In 2010, more than 370 women were murdered. A new wave of worker protests has emerged in the 21st Century as workers decide that enough is enough. In 2015 in Juarez, maquiladora workers set up encampments, plantons, to protest and demand independent unions.
The Han Young maquiladora was a plant in Tijuana, MX, that manufactured car parts parts for Hyundai. In 1997, what started as a complaint by a single injured worker turned into a years-long conflict where employees protested for their right to unionize. The struggle put the NAFTA labor side agreement to the test, but despite the workers' efforts, nothing ever came of it. The case became increasingly political and news-worthy as time went on. However, despite various US NAO hearings and transnational labor rights organizing, the workers were never able to unionize. On the contrary, by the end of the conflicts, all of the laborers had been fired and the maquiladora had been moved to the other side of Tijuana. This was in the face of a Mexican federal court ruling that the strikes had been legal and in fact the corporation had violated the law.
Both the United States and Mexican governments claim to be committed to environmental protection, yet environmental policies have not always been enforced despite the fact that(p42) maquilas are required to be certified and to provide an environmental impact statement. In Mexico, most maquiladoras are global players that use international standards for waste treatment and disposal that exceed Mexican requirements and that require any waste generated to be re-exported. The La Paz Agreement signed by Mexico and the United States in 1983 requires hazardous waste created by United States corporations to be transported back to the United States for disposal. However, the United States Environmental Protection Agency (EPA) reports that only 91 of the 600 maquiladoras located along the Texas–Mexico border have returned hazardous waste to the United States since 1987. The United States Geological Survey, the state of California, and the Imperial County Health Department—among others—have all asserted that the New River, which flows from Mexicali, Baja California, Mexico near the Mexico–United States border into California's Salton Sea, is "the dirtiest river in America". The presence of toxic waste in towns near maquila factories has led to negative health outcomes for the people living there. 163 children in Juarez were born without brains between 1988 and 1992, which can be attributed to the toxic chemicals from the factories.
There have been some improvement at the corporate level of environmental policy. As of the early 2000s, around 90% of maquiladoras had attained an environmental certification. This push to improve environmental policy was led by the Mexican government, not the international companies themselves. The E. PA's US–Mexico Border 2012 Program has an extensive plan to help with environmental issues along that border.
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Maquiladora Slavery,. June 1, 2009
Better Looking Records is a record label with offices in Los Angeles and San Diego. Founded in 1999, Paul Fischer, who DJ'd at KXLU college radio station in Los Angeles and worked at crank! Records, partnered with Dave Brown who ran Holiday Matinee Publicity and Muddle fanzine. The label grew with each release and is now a part of the EastWest Records/ADA family of labels.Boom, Bust, Exodus
Boom, Bust, Exodus: The Rust Belt, the Maquilas, and a Tale of Two Cities by Chad Broughton is the narrative nonfiction account of a Maytag appliance factory that relocates from Galesburg, Illinois, a small city at the western edge of the American Rust Belt, to Reynosa, Tamaulipas, a booming city at the U.S.-Mexico border. The book provides a detailed account of these two places as they change over time drawing on industrial histories, ethnographic observation, oral history interviews, and fieldwork on both sides of the border. In the Galesburg chapters, Boom, Bust, Exodus explores how blue collar families cope, adapt, and, in some cases, thrive, in the decade after the devastating 2004 layoffs. In Reynosa, which in 2015 had nearly 100,000 industrial jobs in the maquiladora (export-oriented factories) sector, Boom, Bust, Exodus offers a ground-level look at Mexico's rapid transition to a globalized economy. In addition, to tell Reynosa's story, Broughton takes the reader to rural Veracruz—from which many of the maquiladora workers have migrated—in order to more fully understand the brave new world of North American economic integration. According to the publisher, "Boom, Bust, Exodus gives us the voices of those who have borne the heaviest burdens of the economic upheavals of the past three decades. A deeply personal work grounded in solid scholarship, this important, immersive, and affecting book brings home the price and the cost of globalization."Bordertown (2006 film)
Bordertown is a 2006 American drama motion picture, written and directed by Gregory Nava and executive produced by David Bergstein, Cary Epstein, Barbara Martinez-Jitner, and Tracee Stanley-Newell. The film features Jennifer Lopez, Antonio Banderas, Martin Sheen, among others.The film is inspired by the true story of the numerous female homicides in Ciudad Juárez and tells the story of an inquisitive American reporter sent in by her American newspaper to investigate the murders.
Jennifer Lopez also recorded a song for the film entitled Porque La Vida Es Asi.El Paso Ysleta Port of Entry
The El Paso Ysleta Port of Entry, is located at the Ysleta–Zaragoza International Bridge. It was established when the first bridge was built at this location in 1938. The bridge was rebuilt in 1955, and again in 1990. The current border inspection station was also constructed at that time.
Traffic at the Ysleta crossing has grown significantly since the new bridge was built, due in part to extreme congestion at the other El Paso bridges, and also to the large number of maquiladora operations that have been established on the east side of Juarez.Female homicides in Ciudad Juárez
The phenomenon of the female homicides in Ciudad Juárez, called in Spanish feminicidio ("feminicide") involves the violent deaths of hundreds of women and girls since 1993 in the northern Mexican region of Ciudad Juárez, Chihuahua, a border city across the Rio Grande from the U.S. city of El Paso, Texas. As of February 27, 2005, the number of murdered women in Ciudad Juárez since 1993 is estimated to be more than 370.After surveying 155 killings out of 340 documented between 1993 and 2003, a government committee found that roughly half were prompted by motives like robbery and gang wars, while a little more than a third involved sexual assault.
The murders of women and girls in Ciudad Juárez since 1993 have received international attention, primarily due to perceived government inaction in preventing violence against women and girls and bringing perpetrators to justice.High and Dry
"High and Dry" is a song by the English alternative rock band Radiohead, released as the first single from their second studio album The Bends (1995). It was released as a double A-side with album opener "Planet Telex". "High and Dry" was released in the UK on 5 March 1995.Index of international trade topics
This is a list of international trade topics.
Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)
Asia-Pacific Economic Cooperation (APEC)
Balance of trade
Bilateral Investment Treaty (BIT)
Branch plant economy
Bretton Woods conference
Bretton Woods system
British timber trade
Central European Free Trade Agreement (CEFTA)
Cost, Insurance and Freight (CIF)
Council of Arab Economic Unity
Doha Development Round (Of World Trade Organization)
Dominican Republic – Central America Free Trade Agreement (DR-CAFTA)
Enhanced Integrated Framework for Trade-Related Assistance for the Least Developed Countries
European Union (EU)
Export documentsATA Carnet
Certificate of origin
EUR.1 movement certificate
TIR CarnetEuropean Free Trade Association (EFTA)
Factor price equalization
Foreign direct investment (FDI)
Foreign exchange option
Foreign Sales Corporations (FSCs)
Free Trade Area of the Americas (FTAA)
Free On Board (FOB)
Free trade area
Free trade zone (FTZ)
General Agreement on Tariffs and Trade (GATT)
Generalized System of Preferences (GSP)
Genetically modified food controversies
Giant sucking sound (a colorful phrase by Ross Perot)
Global financial system (GFS)
Gravity model of trade
Heckscher-Ohlin model (H-O model)
Import substitution industrialization (ISI)
International Chamber of Commerce (ICC)
International factor movements
International Monetary Market (IMM)
International Monetary Fund (IMF)
International Trade Organization (ITO)
Internationalization and localization (G11n)
ISO 4217 (international standard for currency codes)
List of tariffs and trade legislation
Most favoured nation (MFN)
New Trade Theory (NTT)
North American Free Trade Agreement (NAFTA)
Organisation for Economic Co-operation and Development (OECD)
Organization of the Petroleum Exporting Countries (OPEC)
Purchasing power parity (PPP)
Rules of origin
South Asia Free Trade Agreement (SAFTA)
Special drawing rights (SDRs)
Special Economic Zone (SEZ)
Tax, tariff and trade
Terms of trade (TOT)
Trade Facilitation and Development
United Nations Monetary and Financial Conference
Uruguay Round (Of General Agreement on Tariffs and Trade)
World Intellectual Property Organization (WIPO)
World Intellectual Property Organization Copyright Treaty (WIPO Copyright Treaty)
World Trade Organization (WTO)List of free economic zones
In special economic zones business and trades laws differ from the rest of the country. The term, and a number of other terms, can have different specific meanings in different countries and publications. Often they have relaxed jurisdiction of customs or related national regulations. They can be ports or other large areas or smaller allocated areas.
Terms include free port (porto Franco), free zone (zona franca), bonded area (US: foreign-trade zone), free economic zone, free-trade zone, export processing zone and maquiladora.
Most commonly a free port is a special customs area or small customs territory with generally less strict customs regulations (or no customs duties and/or controls for transshipment). Earlier in history, some free ports like Hong Kong enjoyed political autonomy. Many international airports have free ports, though they tend to be called customs areas, customs zones, or international zones.Live at the Astoria
Live at the Astoria is a live concert video from English alternative rock group Radiohead's concert at the London Astoria venue on 27 May 1994, released on 13 March 1995 to VHS, and later to DVD in 2005.The concert is notable for its collection of songs being heard then for the first time. These songs would not appear until the release of The Bends, ten months later. It is Radiohead's only concert home video to date, not including the From the Basement DVD which is a live performance recorded in a studio rather than in front of an audience.It is also notable for the performance of "My Iron Lung", which, apart from the vocals which were re-recorded, is the same take featured on the studio version of the song.Manufacturing in Mexico
Manufacturing in Mexico grew rapidly in the late 1960s with the end of the US farm labor agreement known as the bracero program. This sent many unskilled farm laborers back into the Northern border region with no source of income. As a result, the US and Mexican governments agreed to The Border Industrialization Program, which permitted US companies to assemble product in Mexico using raw materials and components from the US with reduced duties. The Border Industrialization Program became known popularly as The Maquiladora Program or shortened to The Maquila Program.
Over the years, simple assembly operations in Mexico have evolved into complex manufacturing operations including televisions, automobiles, industrial and personal products. While inexpensive commodity manufacturing has flown to China, Mexico attracts U.S. manufacturers that need low-cost solutions near-by for higher value end products and just-in-time components.
Larger foreign firms with global experience can set up operations in Mexico readily. Smaller companies are usually advised to seek professional help from a qualified consulting firm or by working with a partner in Mexico.Manuok
Manuok is an American solo musical project founded in San Diego, California in 2004 by Scott Mercado (Manuok). Scott Mercado (not of Candlebox) (born January 22, 1976) is an American musician, songwriter, and multi-instrumentalist. He was born in Montrose, Scotland and currently resides in San Diego. He is currently a member of Manuok, Sara Lov, Mr. Tube,and Via Satellite and Venice, Italy's Grimoon. His primary instruments are vocals, guitar, keys, and drums – but has appeared on organ, percussion, glockenspiel, and bass. He has recorded internationally alongside The Album Leaf, Horse-Stories (Australia – Europe), Mr. Tube, Maquiladora (Acuarela – Spain), The Soft Lightes (Modular), Pilotram (Transient Frequency – USA), Trost (Minty Fresh,Four Music), Tristeza (Better Looking, Bella Union), Devics (Filter, Bella Union), Via Satellite (Loud and Clear – USA, Human Highway – Japan),Grimoon (Italy), and many more. He is also an accomplished recording engineer, recently recording Grimoon's (Venice,Italy) "Super 8"Maquila Solidarity Network
The Maquila Solidarity Network (MSN) based in Toronto describes itself as:
"A Canadian network promoting solidarity with groups in Mexico, Central America, Africa, and Asia organizing in maquiladora factories and export processing zones to improve conditions and win a living wage."
The network is the secretariat of the Ethical Trading Action Group (ETAG) in Canada. ETAG is an advocating coalition of faith, labour, and non-governmental organizations. They advocate to promote government policies, voluntary codes of conduct, and purchasing policies that promote humane labour practices based on accepted international standards.
A policy of the network is to launch campaigns to help achieve their stated goals. Some companies or countries being focused on by MSN for a campaign include:
Nation of BurmaPast campaigns of MSN have focused on the following companies among others:
The Walt Disney Company
Hudson's Bay Company
Maquilapolis (from Spanish: Maquiladora, referring to the manufacturing operations in a free trade zone, and Greek: πόλις, meaning city) is a 2006 documentary film by Vicky Funari and Sergio De La Torre. It filmed in Tijuana, Baja California and focuses on the factories on the U.S.-Mexican border. The film was made in collaboration with its subjects. Funari and De La Torre established workshops for the woman to learn how to use video equipment to tell their own stories.Matamoros strike
The Matamoros Strike in Matamoros, Tamaulipas is a strike of tens of thousands of Maquiladora workers that began in January, 2019 and is ongoing. The workers, whose manufacturing activity on the Mexico–United States border is tightly linked to the American manufacturing economy, have low wages relative to local living costs and have demanded 20% pay increases and bonuses. While dozens of companies have accepted workers' demands, others have not and the strikes have spread into other industries.McAllen, Texas
McAllen is the largest city in Hidalgo County, Texas, United States, and the 22nd-most populous city in Texas. It is located at the southern tip of the state in the Rio Grande Valley. The city limits extend south to the Rio Grande, across from the Mexican city of Reynosa, and McAllen is about 70 mi (110 km) west of the Gulf of Mexico. As of 2017, McAllen’s population was estimated to be 142,696. It is the fifth-most populous metropolitan area in the state of Texas, and the binational Reynosa–McAllen metropolitan area counts a population of nearly 1.52 million.From its settlement in 1904, the area around McAllen was largely rural and agricultural in character, but the latter half of the 20th century had steady growth, which the metropolitan area still experiences today. The introduction of the maquiladora economy and the North American Free Trade Association led to an increase in cross-border trading with Mexico.Mexicali
Mexicali (English: ; Spanish: [mexiˈkali] (listen)) is the capital city of the Mexican state of Baja California and seat of the Municipality of Mexicali. The City of Mexicali has a population of 689,775, according to the 2010 census, while the population of the entire metropolitan area reaches 996,826; making the city and metropolitan area the second most populous in Baja California.
The city maintains a highly educated and skilled population, as it has modernized and become an important population center in the desert region.
Mexicali's economy has been historically based on agricultural products, and they remain a large sector of the economy. However, its economy has gradually gone from being agricultural to include industry, mainly maquiladoras—duty-free factories in which parts from the United States are imported, assembled, and then returned to the United States as finished products. International companies including Honeywell, GKN Aerospace, Kellogg's, Gulfstream, UTC Aerospace Systems, SunPower, Rockwell Collins, LG Electronics, National Oilwell Varco, Mitsubishi, Autolite, Nestlé, Coca-Cola, Robert Bosch, and Goodrich Corporation have built maquiladora plants in the city.
Mexicali became the national center for the aerospace industry in Mexico when Rockwell Collins established an operation there in 1966. Rockwell Collins is the oldest company under the maquiladora program nationwide.
Founded on March 14, 1903, Mexicali is situated on the Mexico–United States border adjacent to its sister city Calexico, California, with which it forms a dual-state, international population center, Calexico–Mexicali.Prosec Mexico
Prosec (Program of Sectoral Promotion) is a program started by the Mexican government after the implementation of the North American Free Trade Agreement (NAFTA) to overcome the challenges faced by international factories (maquiladoras)) in Mexico resulting from NAFTA article 3. Article 3 states that no NAFTA member can waive or reduce import tariffs conditioned upon the export of the finished good to another NAFTA country. The result was that after Mexico joined NAFTA the tariff rates for many of the raw materials used by maquiladora manufacturing companies would have risen significantly, particularly for goods of Chinese origin.
Prosec is a tariff-reduction measure that avoids running into problems with NAFTA article 3 by allowing either foreign or domestic producers, irrespective of whether the finished good is intended for exportation or domestic sale, to petition the government for a reduction or elimination of a tariff rate.Santa Ana, Sonora
Santa Ana is a small city and municipal seat of Santa Ana Municipality in the Mexican state of Sonora. It is located 168 kilometres (104 mi) north of the state capital Hermosillo and 100 kilometres (62 mi) south of Nogales on the United States border. The town had a 2005 census population of 10,593 inhabitants. Sin dejar huella
Without a Trace, Leaving No Trace(Spanish: Sin Dejar Huella) is a 2000 Mexican film directed by Maria Novaro starring Tiaré Scanda, Aitana Sánchez-Gijón Jesús Ochoa, José Sefamí, Martín Altomaro, Juan Manuel Bernal, Walberto Goldstein. In the film, Ana, a fake Mayan art smuggler, and Aurelia, a maquiladora worker, flee from Ciudad Juárez, Chihuahua in Northern Mexico and those who pursue them to Cancún in the Yucatán peninsula province of Quintana Roo. The two women fight, murder, run, and become an odd couple of friends as they run from the Federales and an ex-boyfriend narcotics trafficker.