What are maquiladoras, and where were many of them located?

A maquiladora is a manufacturing plant that imports and assembles duty-free components for export. These facilities allow owners to benefit from lower labor costs, paying duty only on the value added to the finished product.1

While manufacturing in Mexico was historically concentrated in the Mexico City metropolitan area, the government has encouraged the dispersal of factories through the growth of maquiladoras. These plants originated in the 1960s, with many initially located in the border towns of northern Mexico. Following the implementation of the North American Free Trade Agreement (NAFTA), foreign investment expanded significantly, leading to a concentration of these plants primarily in the Central and North regions of the country.21

It is essential to recognize that the operation of these facilities has faced significant ethical scrutiny regarding labor practices. Reports have highlighted concerns over substandard working conditions, excessively long workweeks without proper compensation, and contributions to environmental pollution, underscoring the fundamental principle that economic development must not come at the expense of human dignity or environmental safety.1