Home > Americas, Canada, Economics, Latin America, USA > NAFTA’s Impact on the Manufactuing Sector

NAFTA’s Impact on the Manufactuing Sector

Jacob Hill writes in Counterpunch:

In this, the fourteenth year of the North American Free Trade Agreement (NAFTA), it is of the utmost importance—in terms of its continued application in the future—to look back and examine the economic impact of free trade on the U.S. and Mexico over the last decade and a half.

A major component of the exercise will be NAFTA’s impact on the proliferation of the maquiladora sector, which repeatedly has resulted in a precipitous drop in manufacturing jobs in the U.S. and Mexico as well as a reliable precedence for the weakening of labor standards in much of the third world.

Human Rights Abuses in Mexican Manufacturing

One of the most drastic and disturbing results of NAFTA has been a boom in the Mexican maquiladora sector. In the U.S. and the developed world, these manufacturing units would deservedly be known as sweatshops. The maquiladoras operate within Latin America because of the abundance of cheap labor and the poor conditions being tolerated. Due to the removal of protective tariffs by free trade pacts, raw components are imported to the maquiladoras without being taxed.

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