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 ?
A very significant vehicle for achieving Mexico's objectives under NAFTA has been the maquiladora system.
As a result, the Mexican and United States governments, with input from the private sector from both countries, created a new mechanism to meet the needs of both countries: the maquiladora system. The creation of the maquiladora program required the close political and technical cooperation and coordination of both nations.
The restrictions on duty drawback and duty remission programs that became effective January 1, 2001, are likely to have a more significant impact on the maquiladora system, and thus on U.S.-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.