What is a maquila?

Although the word maquila (or maquiladora) has varying definitions, the core meaning is the same. According to the book Maquila: Assembly Plants in Northern Mexico (Stoddard 1987), "…the term maquila…refers to the process of production and assembly operations which utilize their large numbers of semiskilled or unskilled machine operation or their manual equivalents." In other words, a maquila is generally a production plant that employs low-wage Mexican workers to assemble parts of imports from the United States. These products are then shipped back to the United States, and are taxed only on the value added at the plant. Maquilas are not just located at the border, however. According to an article by Sue Greenfield and Harold Dyck of Business Forum, "in the mid-1980s, the Mexican government extended the area to include the interior of Mexico as well. It is estimated that 80 percent of the maquilas are still near the border and that 90 percent are U.S.-owned" (1992). Although it is not known for certain where the first maquiladora plant opened or which company owned it, it is rumored that the plant was in Matamoros. Companies that have maquiladora plants include Levi Strauss and Company, Ford, GM, Nike, Motorola, Kodak, Volkswagen, Nissan, and Sony.