Mexico, the New Frontier
or "twin plant" concept originated in the 1970's as a means by which
US Corporations could improve the economics of their operations via
the Mexican labor market.
North American Free Trade Agreement ("NAFTA"), signed in 1994,
enhances the importance of Mexico as a major player in US trade and
state of Chihuahua is the Mexican leader in the
industry employing over 300,000 workers in 448
plants. This represents approximately 25% of the total
employment of the country of Mexico.
minimum wage rate of a factory worker in Mexico, with benefits is
approximately $4.21 per day. Total salary per year is
$1,650.00 including taxes and required fringe benefits paid by the
industry includes 3,288 plants employing over 1.6 million workers.
industry has played a key role in positioning Mexico as the largest
Latin American exporter and the 13th largest in the world. About
half of Mexico's exports of manufactured goods and over 44% of its
total exports are derived from the
is the prime
location in Mexico, providing about one fifth of the nation's
Fortune 500 corporations own over 70 of the
plants in Ciudad Juarez. Among these facilities are:
telecommunications and electronics assembly plants; "clean room"
manufacturing for medical supplies; consumer appliances; and
automotive industry manufacturing. One of the major examples of this
is Delphi Mexico Trade Center in Ciudad Juarez. This center is
dedicated to the research and design of automobile parts used in
automobiles throughout the world. The manufacturing industry
continues to be the largest component of economic growth in Ciudad
Juarez and in all of Mexico.
Paso/Juarez is ranked 16th in trade among the largest
Metropolitan Statistical Areas in the United States. Twenty five
percent of all trade between the US and Mexico crosses the El
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