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PDF Global Competitiveness by the Maquiladora Manufacturing

This research aims to explore the benefits and challenges of using the Maquiladora manufacturing process in Mexico as a U S -based company through a qualitative case study The maquiladora has offered an economic advantage to U S businesses that choose to participate in this process but there are mixed

PDF IMPACT THE MAQUILADORAS OF MEXICO IMPACT

In Mexico where 40 per cent of people live below the poverty line maquiladoras provide jobs for more than a million people But these jobs come at a cost that some people say is too high The labourers many of them women work very long hours for low wages in conditions that are often difficult

PDF Maquiladora regime

obligation for Maquiladoras to export at least 90 of their total annual production which according to the motives expressed by such proposal would only leave income tax benefits to “pure” exporting maquiladoras However this proposal was modified by Congress and the approved legislation requires now that

PDF MAQUILADORAS: A Basic Primer

recognizing these benefits and are opening maquiladoras to take advantage of the large U S market For more information and assistance in the establishment of a maquiladora contact: The American Chamber of Commerce of Mexico A C Lucerna 78 Colonia Juarez del Cuauthemoc 09900 Mexico D F Mexico; Mexiconsult P O Box 10369 El Paso TX 79994

  • How does the maquilas program work?

    Under the maquilas program, U.S. firms can export parts and materials to Mexico, duty-free; assembly, processing, and packaging provide the finished products that are imported back into the United States.

  • How does the USMCA affect maquiladoras?

    The USMCA has applied new pressure to maquiladoras. It is more restrictive in some respects than NAFTA, particularly involving the automotive sector. It imposes restrictions on the origin of steel, aluminum and vehicle parts and new requirements governing labor and wages.

  • How do maquiladoras benefit Mexico?

    Simply put, maquiladoras benefit Mexico because they incentivize external investment by encouraging foreign investors and businesses—especially United States ones—to set up plants in Mexico.

  • What does the executive proposal mean for maquiladoras?

    The Executive Proposal intended to establish an obligation for Maquiladoras to export at least 90% of their total annual production, which according to the motives expressed by such proposal, would only leave income tax benefits to “pure” exporting maquiladoras.

Manufacturing For Export

Rules adopted in 2007 merged the maquiladora industry and a program for homegrown exporters into what is currently known as the Manufacturing, Maquila and Export Service Industry Program.The more familiar name, “maquiladora,” is used here. In 2021, maquiladoras accounted for 58 percent of Mexico’s manufacturing GDP (as well as a majority of the cou

Wages and Productivity

Of the many reasons for factories to locate in Mexico, proximity to the U.S. and preferential tariffs predominate. Mexico has 13 free-trade agreements with 50 countries—including the United States–Mexico–Canada Agreement (USMCA), the 2020 successor to NAFTA. There are also preferential considerations granted to maquiladoras. Mexico has a plentiful

U.S. Border Spillovers

Most maquiladora employment remains concentrated in Mexican border states (though plant proximity to the U.S. has not been a government requirement for many years). Together, the Mexican states bordering Texas (from east to west: Tamaulipas, Nuevo Leon, Coahuila and Chihuahua) plus the other border states of Sonora and Baja California represent 62

Seeking New Opportunities

Maquiladoras have slowly shifted from low-skill, low-wage production toward high-wage, high-productivity operations. China’s entry into the World Trade Organization in 2001 hastened this evolution as lower-end production moved overseas. The shift to higher productivity over the past several decades provides insight into where the industry is headed

Autos’ Leading Role

Maquiladoras’ future will likely include their biggest industry—auto parts manufacturing and auto assembly. U.S. and Mexico have a long history of motor vehicle production that preceded the maquiladora program. Ford became the first entrant in Mexico when it began assembling Model Ts in Mexico City in 1925. General Motors and Chrysler built their i

Electric Vehicle Pivot

The U.S.–Mexico manufacturing relationship reflects decades of production integration, with large, specialized industries spreading costs across borders. As U.S. automakers plan their conversion to electric vehicle production, they are instituting changes in their Mexican subsidiaries. General Motors announced in 2021 that it will invest $1 billion

Post-Covid Opportunity

Maquiladoras may benefit from the much-discussed reshoring or near-shoring of manufacturing arising from pandemic supply disruptions and simmering trade disputes with China. Aggregate data don’t yet show clear evidence of a shift in U.S. imports from Asia and Europe to Canada and Mexico. Average import shares are about the same now as before the pa

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Pour cela, les maquiladoras bénéficient d'un statut fiscal avantageux, qui les autorise à importer sans droits de douanes machines, matières premières et pièces détachées pour assembler des produits destinés ensuite exclusivement à l'exportation.

Comment fonctionne une maquiladoras ?

Connues au Mexique sous l'appellation de « maquiladoras », ces entreprises délocalisées importent les matières premières nécessaires à la production, utilisent la main-d'oeuvre locale bon marché et réexportent les produits finis dans des conditions fiscales avantageuses.

Où sont les maquiladoras ?

Les Maquiladoras sont principalement des filiales de firmes étrangères installées le long de la frontière nord du Mexique, bénéficiant d'exonérations fiscales à l'importation de pi?s pour assembler et exporter des produits finaux.










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