Maquiladora

A maquiladora is a factory usually located in Mexico border towns which import materials and equipment free of Tariffs for assembly or manufacturing. These companies must work under the Maquila Decree, requiring all products to be exported from Mexico. Maquiladoras can be 100% foreign-owned (usually by the United States).

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.

Working conditions in these factories were very substandard until recently and the average pay is about 4-6 dollars a day. A large portion of workers are young women, mostly from rural areas to the south.

There are thousands of maquiladoras located along the US/Mexico border in towns like Ciudad Juárez, which has recently become notorious for the serial murders of young female maquiladora workers. Other health and environmental problems have arose from their presence.

See also: Economy of Mexico