Mexico's Economy
Maquiladoras: Border Factories
How Mexico's maquiladora programme created export factories near the US border from 1965, their role in jobs and trade, and criticisms about wages and conditions.
Maquiladoras are factories that import parts duty-free, assemble products and export them.
Origins
The Border Industrialisation Programme began in 1965 to create jobs along the US border.
Growth
- Maquiladoras expanded rapidly in the 1980s and after NAFTA (1994).
- Cities like Tijuana, Ciudad Juárez and Monterrey grew around them.
- They employ millions in electronics, auto parts, medical devices and appliances.
Why they work
- Proximity to the US market.
- Lower wages than in the US.
- Duty-free imports of components.
Criticisms
- Low wages and long hours.
- Limited local linkages; many inputs imported.
- Environmental damage.
- Violence against women workers in Ciudad Juárez drew attention in the 1990s-2000s.
Comparison
Similar to export processing zones and India’s SEZs, maquiladoras show both the job benefits and limits of assembly-based industrialisation.
The TV factory
A factory in Tijuana imports parts from Asia, assembles televisions and trucks them across the border to US stores within days.
Thinking maquiladoras make everything from scratch
They mainly assemble imported parts for export.
Key takeaways
- Maquiladoras import parts, assemble and export.
- The programme began in 1965 along the border.
- They employ millions near the US.
- Low wages and limited linkages are criticisms.
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