Editing Maquiladora (section)

== History ==
From 1942 to 1964, the [[Bracero program]] allowed men with farming experience to work on US farms on a seasonal basis, and its end ushered in a new era for the development of Mexico.<ref>{{Cite web|url=http://mexicanborder.web.unc.edu/the-bracero-program-3/|title=The Bracero Program|website=Borders and Borderlands|access-date=2018-11-25}}</ref><ref>{{Cite book|title=Braceros: Migrant Citizens and Transnational Subjects in the Postwar United States and Mexico|last=Cohen|first=Deborah|publisher=University of North Carolina Press|year=2011}}</ref> The Border Industrialization Program (BIP) began in 1965 and allowed for a lowering in restrictions and duties on machinery, equipment and raw materials. Before this program, PRONAF, a national border program for infrastructure developments like building roads, parks, electricity, water, building factories, and cleaning up border cities, helped to improve situations along the US-Mexico Border. With BIP, foreign firms were able to use factories built under PRONAF to import raw materials and export goods for a cheaper cost than in other countries.<ref>{{Cite journal|last1=Carillo|first1=Jorge|last2=Zarate|first2=Robert|date=2009|title=The Evolution of Maquiladora Best Practices:1965-2008|journal=Journal of Business Ethics|volume=88|pages=335–348|jstor=27749708|doi=10.1007/s10551-009-0285-8|s2cid=154821506}}</ref><ref name=":4">{{Cite book|title=Assembling for Development|last=Sklair|first=Leslie|publisher=The Center for U.S.-Mexican Studies University of California|year=1993}}</ref> One of the main goals of the Border Industrialization Program was to attract foreign investment.<ref>''The Human Race: Escaping From History''. Employee turnover is also relatively high, p. 52.</ref>

In 1989, the federal government put in place specific procedures and requirements for maquilas under the "[[Maquila Decree|Decree for Development and Operation of the Maquiladora Industry"]].<ref>{{Cite web|url=http://www1.udel.edu/leipzig/texts2/vox128.htm|title=Manufacturing in Mexico: The Mexico In-Bond (Maquila) Program|last=Gonzalez-Baz|first=Aureliano|access-date=2018-11-25}}</ref> Following a [[Latin American debt crisis|debt crisis]] in 1980, the Mexican economy liberalized and foreign investment increased. Factory jobs began to leave central Mexico, and workers followed the jobs from central Mexico to the maquilas in the north and on the border.<ref name=":3">{{Cite web|url=https://schoolhealtheval.stanford.edu/files/StephanieNavarro_HumBio122MFinal.pdf|title=Inside Mexico's Maquiladoras: Manufacturing Health Disparities|last=Navarro|first=Stephanie|date=2014|website=Stanford Medicine}}</ref> In 1985, maquiladoras overtook tourism as the largest source of [[Foreign exchange market|foreign exchange]], and since 1996 they have been the second largest industry in Mexico behind the [[Oil in Mexico|petroleum industry]].<ref>{{cite book|author=Louie, Miriam C.Y.|title=Sweatshop warriors: immigrant women workers take on the global factory|publisher=South End Press|year=2001|isbn=978-0-89608-638-8|page=[https://archive.org/details/sweatshopwarrior00loui_1/page/69 69]|url=https://archive.org/details/sweatshopwarrior00loui_1|url-access=registration}}</ref>

=== NAFTA ===
With the introduction of [[NAFTA]] in 1994, Northern Mexico became an export processing zone. This allowed multinational corporations from the US to produce products cheaply. Corporations could use a maquila to import materials and produce a good more cheaply than in the US by paying Mexican laborers lower wages and paying less in duties. Mexicans work for approximately one-sixth of the U.S. hourly rate.<ref name=":3" /> During the five years before NAFTA, maquila employment had grown at a rate of 47%; this figure increased to 86% in the next five years. The number of factories also increased dramatically. Between 1989 and 1994, 564 new plants opened; in the five years following, 1460 plants opened. However, the maquiladora growth is largely attributable to growth in US demand and devaluation of the peso, not NAFTA itself.<ref>Larudee, Mehrene. "Causes of Growth and Decline in Mexico's Apparel Sector." International Review of Applied Economics, Vol 21, September 2007. pp. 539-559.</ref><ref>Truett, Lila and Truett, Dale. "NAFTA and the Maquiladoras: Boon or Bane." Contemporary Economic Policy, Vol 25, July 2007. pp374-386</ref><ref name="AmericanOutsourcing">Vietor, Richard H.K. and Veytsman, Alexander. "American Outsourcing." 
Harvard Business School Case Study No. 9-705-037, rev. February 2, 2007 (Boston, MA: HBS Publishing, 2005), p. 6. "The devaluation of the peso in 1994, which overnight reduced all peso-denominated manufacturing costs including energy and labor, improving the profitability of the maquiladoras, explains the growth spurt more than the changes in duties that were the result of NAFTA.  US tariffs were already low, and Mexican duties were already not charged to maquiladoras."</ref> In the 1970s, most maquiladoras were located around the [[Mexico&ndash;United States border]]. By 1994, these were spread in the interior parts of the country, although the majority of the plants were still near the border.{{citation needed|date=December 2018}}

=== The 2000s ===
A 2011 Federal Reserve report indicated that the maquiladora industry affects U.S. border city employment in service sectors.<ref>[http://www.dallasfed.org/assets/documents/research/papers/2011/wp1107.pdf Federal Reserve Bank of Dallas, ''The Impact of the Maquiladora Industry on U.S. Border Cities'', 2011]</ref> Although the maquiladora industry suffered due to the [[early 2000s recession]], maquiladoras constituted 54% of the US-Mexico trade in 2004, and by 2005, the maquiladora exports accounted for half of Mexico's exports.<ref name="AmericanOutsourcing" /> In the 2000s, the maquila industry faced competition due to rise of other countries with availability of cheap labor, including Malaysia, India, and Pakistan. The biggest threat came from China's [[Special Economic Zones of the People's Republic of China|Special Economic Areas]].<ref name="AmericanOutsourcing" />