NAFTA and Maquiladoras

NAFTA and Maquiladoras The North American Free Trade Agreement (NAFTA) came into effect on January 1, 1994. This is a comprehensive rule based agreement aimed at promoting 'free trade' between the United States, Mexico and Canada (NAFTA Forum, 1998). ) An agreement was reached among the three countries, which was mainly involved in Mexico and the majority of the disagreement debate expanded mainly in Mexico (Mayer, 1998). Canada is a modern developed country, and very similar to the United States in terms of culture and economy.

In this article I will explain the history and practice of the processing plant. I will explain the background, problems, the benefits that it brings to US companies, and the influence of the North American Free Trade Agreement on the industry. We also propose possible strategies to refill the processing plant to cope with the challenges posed by the North American Free Trade Agreement and ensure that it will remain a strong force in the future. Mexican agricultural workers receive temporary work visas and can work in the US agriculture through a program called the Bracero program which ended in 1965. As a result of this termination, the unemployment rate of some border cities has exceeded 70%. In May 1965, the border industrialization program was established as a substitute for the Bracero program. Later renamed to Maquiladora project

Contrary to the general belief, the refueling procedure dates back to 1965 and existed long before the North American Free Trade Zone. At the processing plant, regardless of whether it is tax exemption (NAFTA) or temporarily lowering the tax rate (18 months), relatively cheap personnel expenses in Mexico, importing raw materials to Mexico to produce imported products doing. Prior to the North American Free Trade Area, companies importing raw materials from anywhere in the world were given preferential tariff rates from the Mexican government as long as the finished goods were exported. Prior to the North American Free Trade Agreement, the US allowed importing goods from the United States to the US, but the tariff rate applies only to the value of raw materials other than the US used for the production of goods, We will lower tariffs on.

In Mexico, the government obliges the North American Free Trade Agreement to generate more foreign investment. The most beneficial industries from the North American Free Trade Area are the processing plant (assembly plant) and the automobile industry. Due to the very low labor costs, the production of Mexico is cheaper than in many other countries. In the United States, companies that have long-term contracts with products and products of many companies, especially Mexican manufacturers, benefit from the North American Free Trade Agreement. Some of the obvious benefits Mexico has achieved is the relocation of US and Canadian companies to Mexico. And it brought some positive long-term effects on the environment and human rights. With all new expansion to Mexico, this will help stabilize the Mexican economy. Many Canadian and American companies will continue to move to the Mexican border. Mexico lacks employment and environmental regulations, but with the rapid expansion of the Mexican border, it will help stabilize and enact regulation