Maquiladora Program
Maquiladora Program began in 1965 when Mexico launched the Border Industrialization Program, letting factories near the U.S. border import components and equipment duty-free, assemble products and export them, mostly to the United States.
What happened and why it matters
The maquiladora program built the cross-border manufacturing base that makes Mexico a leading nearshoring option for U.S. brands today. It followed the end of the U.S. Bracero guest worker program in 1964, which left many workers in Mexican border towns without jobs. Foreign-owned plants could bring in parts duty-free, and duty was generally owed only on the value added when finished goods entered the United States. Later reforms folded the program into IMMEX, and NAFTA and then the USMCA widened cross-border trade. Brands that produce in Mexico still depend on these rules, along with customs brokers, cross-border drayage and careful country-of-origin records.
Related events
Laws and regulations
Sources
- Maquiladora (Wikipedia) en.wikipedia.org
- U.S. and Mexican Companies Form Maquiladoras (EBSCO Research Starters) ebsco.com