How did NAFTA affect maquiladora assembly plants in Mexico?

The implementation of the North American Free Trade Agreement (NAFTA) significantly impacted maquiladora assembly plants in Mexico by accelerating their growth and expanding their role in the country's industrial base.12

Following the advent of NAFTA, there was an explosion of foreign investment in these plants, particularly in Mexico's Central and North regions. This influx of investment helped disperse industrial employment away from the Mexico City metropolitan area, which had historically dominated manufacturing. These facilities allowed foreign companies to produce goods—such as motor vehicles, electronics, furniture, and clothing—for export to the United States and Canada while taking advantage of lower labor costs and less-stringent environmental regulations.21

While NAFTA facilitated this industrial expansion, it also drew criticism regarding labor and environmental standards. Some maquiladoras faced scrutiny for substandard working conditions, long workweeks, and contributions to pollution. Furthermore, the shift of production to Mexico became a contentious political issue in the United States, as critics argued it diminished job opportunities for American workers, eventually contributing to the renegotiation of the agreement into the United States–Mexico–Canada Agreement.1