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Encyclopedia > Maquiladoras

A maquiladora (or maquila) is a factory, that imports materials and equipment on a duty-free and tariff-free basis for assembly or manufacturing. A factory (previously manufactory) or manufacturing plant is a large industrial building where workers manufacture goods or products. ... This article is about a tax measure. ... A tariff (sometimes known as a customs duty) is a tax on imported or exported goods. ... Assembly may refer to the following things: In politics, any body meeting together to discuss matters, a parliament or a legislative assembly such as the French revolutionary Legislative Assembly, or a body more designed to mediate between otherwise independent bodies, such as the United Nations General Assembly. ... This article needs to be cleaned up to conform to a higher standard of quality. ...


There were many maquiladoras located in Mexican towns along the U.S.-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 international border between Mexico and the United States runs a total of 3,141 km (1,951 miles) from San Diego, California, and Tijuana, Baja California, in the west to Matamoros, Tamaulipas, and Brownsville, Texas, in the east. ... The Maquila Decree, established in 1989, lays out the legal requirements for foreign operations in Mexico. ... ...


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 Bracero Program was a joint labor program initiated in August, 1942 by the Mexican Federal Government. ...


See also

The Central American Free Trade Agreement (CAFTA) is a free trade agreement between the United States and the Central American countries of Guatemala, Honduras, and Canada, and Mexico. ... // Overview Mexico has a free market economy with a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. ... The FTAA logo. ... Free trade is an economic concept referring to the selling of products between countries without tariffs or other trade barriers. ... Globalization describes the changes in societies and the world economy that result from dramatically increased international trade and cultural exchange. ... 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 system British timber trade Cash crop Comparative advantage Continental trading bloc Cost, insurance and freight Currency Customs Broker Customs...

External links


  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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