What is a Maquiladora?

July 2, 2009

“Maquiladora originates from the word maquilar, the fee Spanish mill owners charged for processing wheat cultivated by local growers. Today the term Maquiladora in Mexico has evolved to include any industrial or service process, utilizing imported materials, that will be transformed, repaired, or elaborated and subsequently exported to the U.S. or other foreign country. Under the North American Free Trade Agreement (NAFTA), materials imported from the U.S. or Canada pay zero duties, as long as the components used are NAFTA certified.
For manufacturers, it is a way to remain competitive without moving operations to Asia, involving significant lead times, cumbersome freight charges, and U.S. import duties. The close proximity of Mexico allows easy, inexpensive transportation to and from the U.S.

Additionally, Mexico has a young, educated workforce, with a strong work ethic and a desire to remain in their own country. Mexico earns foreign exchange by exporting labor, without exporting laborers.”

From a production outsourcing company who can arrange to have your product built a few feet from the American border for considerably less cost. This is the parasitic nature of “free trade”.

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