Maquiladoras

Maquiladoras or maquila are terms often used synonymously to identify a foreign-owned factory in Mexico or Central America. In some contexts, the term maquila is used to refer to the factory and maquiladora to the factory worker. The maquiladora workers are predominately female; approximately 70 percent of this workforce are women, some are as young as 12 years of age. They work in a sweatshop-like setting earning extremely low pay, working long hours and under scandalous conditions.

International export production facilities in Mexico have been in existence since the 1960s; during the 1980s the number of these factories began to grow rapidly. A major driving force, enabling transnational corporations to profit tremendously and encourage outsourcing, was facilitated by the North American Free Trade Agreement (NAFTA). NAFTA was, at the outset, a Republican initiative under George H. W. Bush, but ultimately was signed into law on December 8, 1993, by President Bill Clinton. NAFTA's goal was to facilitate trade between the United States, Canada, and Mexico.

The maquiladora has its origins in Mexico, but this model has been expanded to the nations of Central America. The Central American Free Trade Agreement (CAFTA) under the George W. Bush administration was passed by a 217-to-215 vote on July 27, 2005, but the January 1, 2006 implementation date passed without international action due to staunch criticism. However, CAFTA could not be halted and was implemented in El Salvador on March 1, 2006; Nicaragua and Honduras on April 1, 2006; Guatemala on July 1, 2006; and the Dominican Republic on March 1, 2007. Costa Rica is the only remaining nation included in CAFTA to not have the trade agreement ratified, as they are currently waiting to hold a referendum.