Tag Archives: tamaulipas

US-Owned Maquilas Welcome Prospect Of Changes To NAFTA

Alberto Martinez welds steel at a maquila owned by Metal Industries of Florida. (photo: Lorne Matalon)

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Alberto Martinez welds steel at a maquila in Reynosa, Mexico owned by Metal Industries of Florida (photo: Lorne Matalon)

REYNOSA, Mexico–American-owned assembly-line factories known as maquilas that line the Mexican side of the border with the U.S. have been bracing for change since the election of Donald Trump. But not in the way you might expect. They clearly don’t want a border tax placed on their shipments to the United States, as the Trump administration has threatened. But they are embracing the possibility of an updated Nafta saying the current version makes it a harder to operate in Mexico compared to the U.S. It all has to do with time consuming paperwork.

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Maquila managers and trade groups interviewed in both countries see regulatory uncertainty as an opportunity. “Nafta is 30 years old. It hasn’t kept up with today’s economy,” said Mike Myers, a Texan who runs a maquila owned by Metal Industries, a Florida company that makes vents for air conditioners and heating systems.

Mike Myers, a maquila manager in Reynosa, Mexico. He opposes a border tax but supports an updated Nafta. (photo: Lorne Matalon)

Maquilas are foreign-owned factories in Mexico, many American-owned, that produce goods for export. Mexican and Asian interests also own maquilas, which sprung up like mushrooms after the rain when NAFTA took effect in 1994. Maquilas leverage low labor costs in Mexico and duty free access to the U.S. market to produce everything from televisions to medical equipment to computer parts. Continue reading

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U.S. Junk Cars Sustain A Local Microeconomy In Guatemala

Story originally published at

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A version of this story aired on Texas Standard from KUT Austin.

 

MARFA, Texas — Old cars that have little resale value in the United States are being towed in caravans that begin in California, Arizona and Texas and end up in Guatemala.

The cars are also loaded up with old bicycles, recycled car batteries and clothing that have been jettisoned in the United States.

The vehicles are fixed up in Guatemala and sold across Central America.

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