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U.S.-Mexico Trade: The Maquiladora Industry and U.S. Employment

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Report Type Reports and Testimonies
Report Date July 20, 1993
Report No. GGD-93-129
Subject
Summary:

U.S. trade and investment in Mexico have soared in recent years. Between 1985 and 1992, U.S. merchandise exports to Mexico tripled in nominal (not adjusted for inflation) terms, while imports from Mexico grew by about 80 percent. Between 1985 and 1991, the cumulative stock of U.S. direct foreign investment in Mexico more than doubled, from $5.1 billion to $11.6 billion. Precise data are unavailable on the proportion of U.S.-Mexican trade and investment involving maquiladora firms. Studies of the maquiladora's impact on U.S. employment are divided, and it is hard to know which assessment, if any, is reliable. Although these studies suggest that export to maquiladoras support some U.S. jobs, they also show that maquiladora production--most of which the United States imports--has displaced other U.S. jobs.

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