Maquiladorization as a Global Process
A maquiladora is an assembly plant set up under the Border Industrialization Program instituted by the Mexican government in 1965 to provide employment for Mexican citizens in the cities along the U.S. border. An immediate reason for the government’s action was the termination of the bracero (guest worker) program by the United States that left many Mexican workers idle in these cities. The new program allowed duty free importation into Mexico of production equipment and materials and allowed 100 per cent foreign ownership of maquiladoras’ (Mobley, 1990, p. x). The United States supported the Mexican border policy by adopting legislation in the 1960s to introduce items 806.30 and 807.00 of the Tariff Schedules of the United States.2 These special trade provisions permit importation of products assembled abroad in export processing zones with the appropriate tariffs applied only to the added value associated with assembly (and not the total value of the products).
KeywordsForeign Firm Wage Differential Debt Crisis Physical Infrastructure North American Free Trade Agreement
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