The Maquiladora plants of Mexico

Most of the plants are within 5o miles of the USA border.

A large part of the work force is female.

In spite of jobs (low paying), many still live in abysmal conditions.

A FEW Examples of Maquiladoras in Mexico

•3 Day Blinds •20th Century Plastics •Acer Peripherals •Bali Company, Inc. •Bayer Corp./Medsep •BMW •Canon Business Machines

•Chrysler •Casio Manufacturing •Daewoo •Eastman Kodak/Verbatim •Eberhard-Faber •Eli Lilly Corporation

NORTH AMERICA FREE TRADE AGREEMENT (NAFTA)

What is NAFTA?It is a “free trade” zone that stretches from Alaska to the Yucatan Peninsula. This has ended most tariffs on imported goods.

A tariff is a tax added to the cost of a product that is being sent into (an occasionally out of) a country.

The primary goal of NAFTA is to eliminate 99% of trade barriers and tariffs between the three countries.

NAFTA is unique in that it is the first economic trade agreement of its kind between developed and developing countries.

Opponents of NAFTA argue that the agreement is a threat to farmers on both sides of the border.

Cheaper Mexican farm products could ruin American farmers while technology driven crops like wheat could put Mexican farmers out of business.

Opponents argue that NAFTA will shift more American jobs to Mexico.

NAFTA was opposed by labor unions, many farmers, factory workers, environmentalists and the like.

Critics argue that pollution will become worse in Mexico, where environmental regulations are lax.

Supporters argued that NAFTA would cost a few American jobs, but that we would create many more new jobs with the additional business we would do in Mexico.

Supporters included US business, Presidents George Bush Sr., Bill Clinton, George W Bush, and most American congressmen.

Chasing the cheapest manufacturing countries.

Country AVG Manufacturing wage per hour (2002)

USA $ 19.20

Canada 15.60

Mexico 2.10

Japan $14.80

Korea 7.40

El Salvador 1.15

China .84

NAFTA has been in effect for over 10 years now. Much of what both sides of the issue said have been right. Mexican business have seen the highest growth rates since the bill was signed.

In reality, no one really knows if NAFTA had a positive influence on the American economy. Most think it has cost the US jobs.