MAQUILA & FREE TRADE
THE MAQUILA PROGRAM
Established in the late 1950s, Mexico’s Maquila Decree, also known as the Maquiladora Program, was designed to streamline manufacturing and assembly processes. This program allows raw materials, parts, and equipment to be imported into Mexico duty- and tariff-free for assembly or manufacturing. Once completed, the finished goods are exported back to their country of origin, creating an efficient and cost-effective production model that benefits businesses across borders.
Twin Plant Operation
The Twin Plant Program facilitates manufacturing processes across two countries, leveraging the unique strengths of each location. Labor-intensive tasks are performed in regions with low-cost labor, optimizing production costs, while sophisticated work requiring highly skilled labor is completed in locations that specialize in precision and quality. This collaboration between twin plants creates a seamless and efficient manufacturing workflow.
The USMCA Free Trade Agreement
The United States-Mexico-Canada Agreement (USMCA), which replaced NAFTA on July 1, 2020, is designed to promote balanced trade between the three nations. By strengthening economic ties and enhancing market opportunities, the agreement benefits businesses and consumers alike, ensuring streamlined and competitive trade practices across North America.
Through these programs and agreements, Giant Merchandising ensures cost-effective, high-quality manufacturing while adhering to international trade standards.