Are Maquiladoras only an asset for the USA?

Résumé du document

There are about 3320 kilometres of frontiers between Mexico and the United States of America: more than three times the length of France. All along the border were built, since the years 1960s, more than 3000 export assembly plants, primarily dedicated to the production of electronic equipment, clothing, plastics, furniture, appliances, or auto parts. These factories, also named maquiladoras or sweatshops, are employing over one million Mexicans. The typical maquiladora employee is a young single underpaid woman working up to ten hours a day, six days a week, in poor conditions and for about 50 cents an hour. The creation of these factories is obviously an idea of the United States of America, which own the majority of them and are the first beneficiaries of the goods produced in maquiladoras.

Extraits

[...] But it is easy to understand that several other countries take advantage of the situation, only by looking at the origin of maquiladoras: many of them are owned by European, Japan, Korean or Chinese companies. On top of that, even Mexico itself seems to profit from the presence of these plants, since they provide work for the population. Moreover, the Free Trade Agreements signed between Mexico and European countries ease European investment in Mexico. Then, there is no wonder why the maquiladora industry is continuing to grow at robust rates since its creation. [...]

[...] A large number of well-known international companies have settled their plants along the US border. Among them, Motorola, Pioneer, Nike, Canon, IBM, or Sony are some of the brands that people from industrialized countries use in their everyday life SCERP: Southwest Center for Environmental Research and Policy 2 Border Environment Research Reports, May NAFTA: North American Free Trade Agreement, including Canada, the USA and Mexico. Part An advantage for Mexico, in search for employment Besides the fact that they represent a huge asset for the United States, in some way maquiladoras are also beneficial for Mexico. [...]

[...] These treaties were an opportunity for Mexico to diversify its exports destinations, but an important benefit for the European Union too. Indeed, since of the Mexican industrial products get duty-free access into the Union. In this way, the 15 countries can take advantage of the low prices of maquiladoras products. Plus, more and more European companies are choosing to invest in Mexico, especially via the maquiladora industry, mostly in order to take advantage of the lucrative North American market which Mexico deliver to them through the NAFTA. [...]

[...] In Mexico, the minimum wage of a maquiladora worker is 3,40 Dollars a week, whereas in the US it is 5,15 Dollars per hour (and the large majority of people are paid much more than that). And thanks to the NAFTA3, maquiladoras are only charged payroll taxes for their employees, but no custom fees. Moreover, these factories represent a huge source of incomes for the north. The US market is very healthy, partly thanks to these “sweatshops”: more than 80% of the goods produced in maquiladoras are sent to the USA. [...]

[...] Are Maquiladoras only an asset for the USA? Table of contents Introduction Part A strategic asset for the USA Part An advantage for Mexico, in search for employment Part A source of benefits for European countries Conclusion Bibliography Introduction There are about 3320 kilometres of frontiers between Mexico and the United States of America: more than three times the length of France. All along the border were built, since the years 1960s, more than 3000 export assembly plants, primarily dedicated to the production of electronic equipment, clothing, plastics, furniture, appliances, or auto parts. [...]