Maquiladora

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Related to Maquiladora System: Maquiladores, Maquilladora

Maquiladora

A factory in Mexico established by a U.S. company to make finished products and ship them to the United States. Maquiladoras are close to the U.S. border with Mexico. They are controversial in the United States because they are thought to take away jobs from Americans who otherwise would have manufactured the products. They are also controversial in Mexico because they are thought to exploit Mexican workers. NAFTA made maquiladoras more cost effective. In the mid-2000s, maquiladoras accounted for more than half of U.S.-Mexican trade. A maquiladora is also called a maquila.
References in periodicals archive ?
Mexican trade and investment, than have any other changes since NAFTA became effective in 1994, and perhaps since the creation of the maquiladora system in 1965.
The most important aspect of the new maquiladora system relate to the major change.
Under the revised maquiladora system, payment of duties where there is no special sector exemption is deferred for two months following the exportation of the finished goods, (144) which may mean 4-6 months from the date of importation of the materials into Mexico.