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Encyclopedia > 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. Image File history File links Broom_icon. ... This article or section does not cite any references or sources. ... This article is about a tax measure. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank   Money supply Fiscal policy Spending   Deficit   Debt Trade policy Tariff   Trade agreement Finance Financial market Financial market participants Corporate   Personal Public   Banking   Regulation        For other uses of this word, see tariff (disambiguation). ...


"Maquiladora" is primarily used to refer to factories in Mexican towns along the United States–Mexico border, but increasingly is used to refer to factories all over Latin America. Maquiladora factories encompass a variety of industries including electronics, transportation, textile, and machinery, among others. Maquiladoras may be 100% foreign-owned (usually by U.S. companies) in most countries. The use of maquiladoras is an example of offshoring. Other countries such as Japan, Germany, and Korea have maquiladoras as well, but the majority of them are located in Mexico and are associated with United States' companies.[1] The border between Mexico and the United States spans four U.S. states, six Mexican states, and has over twenty commercial crossings. ... Latin America consists of the countries of South America and some of North America (including Central America and some the islands of the Caribbean) whose inhabitants mostly speak Romance languages, although Native American languages are also spoken. ... For other uses of terms redirecting here, see US (disambiguation), USA (disambiguation), and United States (disambiguation) Motto In God We Trust(since 1956) (From Many, One; Latin, traditional) Anthem The Star-Spangled Banner Capital Washington, D.C. Largest city New York City National language English (de facto)1 Demonym American... Offshore may refer to oil and natural gas production at sea; see oil platform. ... This article is about the Korean civilization. ...


The term "maquiladora", in the Spanish language, refers to the practice of millers charging a "maquila", or "miller's portion" for processing other people's grain.[2]

Contents

NAFTA

The North American Free Trade Agreement, which was enacted in 1994, further eliminated tariffs and other barriers to trade between Canada, Mexico, and the United States. After the advent of NAFTA, the maquiladora industry expanded even more rapidly. While nearly every state in Mexico now has a maquiladora, the vast majority are still located along the United States-Mexico border.[3] NAFTA redirects here. ... Year 1994 (MCMXCIV) The year 1994 was designated as the International Year of the Family and the International Year of the Sport and the Olympic Ideal by the United Nations. ...


Controversies and Concerns

Gender

Mexico possesses a strong system of labor laws, yet enforcement of these laws within the maquiladora industry is often lax.[4] While most people who were employed under the original Bracero Program were men, the majority of maquiladora employees are women.[5] Women are considered to be preferred to men because women will typically work for cheaper wages, and are easier for male employers to direct and impose poor working conditions on. Some maquiladora operators have admitted a preference for women also because women often display a greater level of patience and higher dexterity than men in performing the standardized and repetitive work of an assembly plant. Therefore, the maquila industry has, based on these conditions, been accused of the sexual exploitation of women. On the other hand, opponents of this allegation argue that women are paid higher wages working in a maquiladora than they commonly would in other forms of employment in northern Mexico. In addition, some have argued that maquiladora employment enables women to make their own money and thus become more independent, while teaching them new skills and giving them more opportunities that they may not otherwise acquire.


The maquiladora operators have also been accused of discrimination of child-bearing-aged women in order to keep costs down because Mexico’s labor laws contain extensive maternity requirements. They often demand pregnancy tests as a prerequisite to employment or insist that female workers use birth control.[6] If a woman is found to be pregnant, it may likely hinder her chances of getting hired, and if an existing worker becomes pregnant, she may be terminated.[7]


In recent years, however, there has been a shift toward hiring more male workers due to labor shortages and the emergence of heavier industries operating within maquiladoras.


Also in recent years there has been an increasing amount of brutality especially towards women in Ciudad Juarez, the main city for Maquiladoras. Sexual assaults and killings have occurred because of poverty and extremely poor living conditions experienced in these cities. Police corruption allows for these brutalities to continue due to mixed up DNA tests, mishandling of evidence and Media intervention. (Moffatt, 21)


Low Wages, Long Hours

One of the main goals of the BIP was to attract foreign investment. In order to do that, Mexican labor must remain cheap and competitive with other major export countries to keep the United States firms operating within the Mexican assembly plants. So to keep production high and costs low, maquiladoras have been accused of harsh working environments, which include low wages, forced overtime, and illegal working conditions for minors. Mexican women work for approximately one-sixth of the U.S. hourly rate.[8] It has also been reported that the income one receives from work in a maquiladora is rarely enough to support a family. Low wages are a main reason for foreign investment. However, some management personnel condone low wages in maquiladoras by arguing that the cost of living is lower in Mexico than in other countries. Employee turnover is also relatively high, reaching up to 80 percent in some maquiladoras, due in part to stress and health threats common to this type of labor.[9]


Environmental Concerns

Many of the environmental concerns, particularly in the border region of Mexico, are attributed to Mexico’s economic development strategies and intense industrialization. The dense number of maquiladoras and the inability of Mexico’s environmental regulatory program to keep up with the rapid growth of the industry over the past quarter of a century have contributed to some major environmental problems. Since many factories handle and use a number of toxic chemicals, solutions, and acids, the hazardous waste is a concern for both workers and residents surrounding maquiladoras. Pollution from the maquiladora industry is also a threat to the health of both United States and Mexican citizens. Both the United States and Mexican governments claim to be committed to environmental protection, yet environmental policies have not always been enforced.[10] Although 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 U.S. for disposal, many companies avoid paying disposal costs by dumping toxins and other waste into Mexico’s rivers or deserts. The United States Environmental Protection Agency reports that only 91 of the 600 maquiladoras located along the Texas-Mexico border have returned waste to the United States since 1987.[11] Year 1983 (MCMLXXXIII) was a common year starting on Saturday (link displays the 1983 Gregorian calendar). ... EPA redirects here. ... Year 1987 (MCMLXXXVII) was a common year starting on Thursday (link displays 1987 Gregorian calendar). ...


Although NAFTA recognizes the need to prevent hazardous waste, Mexico’s waste imports have nearly doubled in recent years, and most of this waste comes from the United States.[12] In Mexico, maquiladoras lack proper waste management facilities and the ability to clean up disposal sites, which is why much of the hazardous waste is illegally disposed of.[13] Local governments have financially not been able to provide basic waste management services because maquiladoras pay few taxes, and as a result, there is more of an economic incentive to illegally dump hazardous waste than to safely and properly dispose of it. Environmental hazards associated with maquiladoras include polluted rivers and contaminated drinking water. According to the Southwest Consortium for Environmental Research and Policy (SCERP), all streams and rivers in the border region have suffered some amount of devastation as a consequence of the maquila industry.[14] Furthermore, the United States Geological Survey, the state of California, and the Imperial County Health Department have all asserted the New River, which flows from Mexicali near the border to the Salton Sea in California to be "the dirtiest river in America".[15] Along with water contamination, health-threatening levels of pollutants, such as carbon monoxide, are also emitted into the air. Ongoing exposure to toxic wastes can contribute to health problems such as cancer, skin disease, hepatitis, and birth defects. Furthermore, Mexico does not have any laws requiring industries to publicize basic environmental data on their operations, and so Mexico does not keep a very accurate inventory of hazardous waste.[16] InsertSLUTTY WHORES≤ non-formatted text here{| class=toccolours border=1 cellpadding=4 style=float: right; margin: 0 0 1em 1em; width: 20em; border-collapse: collapse; font-size: 95%; clear: right; |+ United States Geological Survey |- |style= align=center colspan=2| [[Image:USGS logo. ... Official language(s) English Capital Sacramento Largest city Los Angeles Largest metro area Greater Los Angeles Area  Ranked 3rd  - Total 158,302 sq mi (410,000 km²)  - Width 250 miles (400 km)  - Length 770 miles (1,240 km)  - % water 4. ... The New River may refer to: The New River, a man-made watercourse in England The New River that flows into the Atlantic Ocean in southeastern North Carolina in the United States. ... Mexicali is the capital of the State of Baja California, Mexico as well as the seat of the municipality of Mexicali. ... For the film, see The Salton Sea. ...


Maquiladoras in Popular Culture

  • 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. The track was considered for Radiohead's second LP titled The Bends.

Radiohead are an English rock band. ... The Bends track listing The Bends (2) High and Dry (3) Fake Plastic Trees (4) High and Dry was the second single taken from the Radiohead album The Bends, and appeared as a double A-side with the album opener Planet Telex. It was released in the UK on 5... This article is about the album by Radiohead. ... At the Drive-In was an American band from El Paso, Texas that existed from 1993 to 2001. ... Invalid Litter Dept. ...

See also

Presidents Francisco Flores Pérez (former), Ricardo Maduro, George W. Bush, Abel Pacheco (former), Enrique Bolaños and Alfonso Portillo (former) The Dominican Republic–Central America Free Trade Agreement, commonly called DR-CAFTA (pronounced Doctor Cafta), is a free trade agreement (legally a treaty under international law, but not under... The economy of Mexico was the 12th largest in the world in 2006[1] with a gross domestic product that surpassed a trillion dollars in 2004,[2] measured in purchasing power parity. ... This article or section needs to be updated. ... Free trade is an economic concept referring to the selling of products between countries without tariffs or other trade barriers. ... The rise of multinational corporations and outsourcing have played a crucial part in globalization. ... International trade - an overview Absolute advantage Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs) APEC Autarky Balance of trade barter Bilateral Investment Treaty (BIT) Bimetallism branch plant Bretton Woods Conference Bretton Woods system British timber trade Cash crop Comparative advantage Continental trading bloc Cost, insurance and freight Currency... Colonias, as used along the U.S.-Mexican border, refer to rural, unincorporated settlements which often lack basic infrastructure and which are marked by poverty. ... Sweatshop is a pejorative term used to describe a manufacturing facility, usually a garment manufacturing facility, where working conditions are poor and workers are paid little. ...

External links

Footnotes

  1. ^ Hampton, Elaine. Globalization Legacy: A View of U.S. Factory Involvement in Mexican Education. p. 2.
  2. ^ Wilson, Patricia A. Exports and Local Development: Mexico's New Maquiladoras. p. 139.
  3. ^ Kamel, Rachel and Anya Hoffman. The Maquiladora Reader: Cross-Border Oraganizing Since NAFTA. p. 3.
  4. ^ Kamel, Rachel and Anya Hoffman. The Maquiladora Reader: Cross-Border Organizing Since NAFTA. p. 1.
  5. ^ Kamel, Rachel and Anya Hoffman. The Maquiladora Reader: Cross-Border Organizing Since NAFTA. p. 3.
  6. ^ Human Rights Watch. p. 31.
  7. ^ Human Rights Watch. p. 31.
  8. ^ The Human Race: Escaping From History.
  9. ^ Kourous, George. Workers' Health is on the Line: Occupational Health and Safety in the Maquiladoras. p. 52.
  10. ^ Kamel, Rachel and Anya Hoffman. The Maquiladora reader: Cross-Border Organizing Since NAFTA. p. 42.
  11. ^ Kelly, Mary E. Free Trade: The Politics of Toxic Waste. p. 48.
  12. ^ Clapp, Jennifer. Piles of Poisons: Despite NAFTA's Green Promises, Hazardous Waste Problems are Deepening in Mexico. p. 25.
  13. ^ Kely, Mary E. Free Trade: The Politics of Toxic Waste. p. 48.
  14. ^ CorpWatch. Maquiladoras at a Glance.
  15. ^ Sklair, Leslie. Assembling For Development: The Maquila Industry in Mexico and the United States. p. 94.
  16. ^ Kelly, Mary E. Free Trade: The Politics of Toxic Waste. p. 48.

Resources

Brown, Garrett D. Protecting Workers’ Health and Safety in the Globalizing

Economy through International Trade Treaties. International Journal of
Occupational and Environmental Health. Apr-Jun 2005.

Campbell, Monica. Maquiladoras: Rethinking NAFTA. PBS, 2002.


Clapp, Jennifer. Piles of Poisons: Despite NAFTA’s Green Promises,

Hazardous Waste Problems are Deepening in Mexico. Alternatives Journal.
Waterloo: Spring 2002. Vol. 28, Iss. 2.

CorpWatch. Maquiladoras at a Glance. June 30, 1999.

http://www.corpwatch.org/article.php?id=1528.

Fatemi, Khosrow. The Maquiladora Industry: Economic Solution or

Problem? New York: Praeger Publishers, 1990.

Gruben, William C. and Sherry L. Kiser. The Border Economy: NAFTA and

Maquiladoras: Is the Growth Connected? Federal Reserve Bank of Dallas.
June 2001.

Hampton, Elaine. Globalization Legacy: A View of U.S. Factory Involvement

in Mexican Education. Multicultural Education. Summer 2004.

Hausman, Angela and Diana L. Haytko. Cross-Border Supply Chain

Relationships: Interpretive Research of Maquiladora Realized Strategies.
The Journal of Business and Industrial Marketing. Santa Barbara: 2003. Vol.
18, Iss. 6/7.

Human Rights Watch. No Guarantees: Sex Discrimination in Mexico’s

Maquiladora Sector. The Maquiladora Reader. Philadelphia: Mexico-U.S.
Border Program, 1999.

Kamel, Rachel and Anya Hoffman. The Maquiladora Reader: Cross-Border

Organizing Since NAFTA. Philadelphia: Mexico-U.S. Border Program, 1999.

Kelly, Mary E. Free Trade: The Politics of Toxic Waste. The Maquiladora

Reader. Philadelphia: Mexico-U.S. Border Program, 1999.

Moffatt, Allison. "Murder, Mystery and Mistreatment in Mexican Maquiladoras." Women & Environments International Magazines 66 (2006): 19.


Reed, Cyrus. Hazardous Waste Management on the Border. The Maquiladora

Reader. Philadelphia: Mexico-U.S. Border Program, 1999.

Shorris, Earl. The Life and Times of Mexico. New York: W.W. Norton and

Company, Inc., 2004.

Sklair, Leslie. Assembling for Development: The Maquila Industry in Mexico

and the United States. USA: Center for U.S. Mexican Studies, 1993.

Stoddard, Ellwyn R. Maquila: Assembly Plants in Northern Mexico. USA:

Texas Western Press. 1987.

The Human Race: Escaping From History. dir. Josh Freed. Green Lion

Productions Inc., videocassette, 1994.

Villalobos, J. Rene, et al., Inbound for Mexico. Industrial Engineer.

Norcross: April 2004. Vol. 36, Iss. 4.

Wilson, Patricia A. Exports and Local Development: Mexico’s New

Maquiladoras. USA: University of Texas Press, 1992.

  Results from FactBites:
 
What is a maquiladora? (2634 words)
Maquiladoras are permitted to bring whatever professional or personnel for positions of trust they need to serve as managers, technicians and in other fields requiring specialization.
Since maquiladoras are usually structured as cost centers, with machinery and equipment, materials, components and spare parts on loan (rent free) from the parent company, their profits are marginal, thus the income tax impact in marginal.
Also, in the event that the maquiladoras that utilize said quotas require to carry out transfer operations, these must be authorized by SECOFI and said transfer operations shall be considered indirect exportations.
GAO-03-891, International Trade: Mexico's Maquiladora Decline Affects U.S.-Mexico Border Communities and Trade; ... (16062 words)
However, the Maquiladora program continues to be quite distinct from other efforts initiated by the Mexican government to encourage exports.[Footnote 4] Firms must register with the government of Mexico to be considered maquiladoras and, once registered, are eligible for several key benefits, such as preferential tariffs on inputs and machinery, and simplified Mexican customs procedures.
Maquiladora trade between the United States and Mexico totaled about $121 billion in 2001, with maquiladora exports ($75 billion) accounting for more than half of Mexico's total exports to the United States.[Footnote 7] Border cities are typically seen as the primary beneficiaries of growing U.S.-Mexico trade.
Maquiladoras Grew Rapidly in the 1990s, with Growth Varied by Region and Industry: During the 1990s, maquiladoras proved to be one of the more dynamic components of Mexican manufacturing.
  More results at FactBites »


 

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