Trade Agreement" 34).
One of the issues between the U.S. and Mexico illustrates the problems the U.S. labor force is having with international competition, and this is the question of the maquiladoras. Maquiladora industries are located in Mexico along the border between Mexico and the U.S. They are also called twin industries, and they are assembly plants which, according to the International Trade Commission, are concentrated in the manufacture of electric and electronic goods, textiles and apparel, furniture, and transportation equipment. These are American-owned plants that are located in Mexico because of the relatively low wages of Mexican workers and because of special Mexican and U.S. tariff provisions. Mexico allows U.S.-made parts to be brought into Mexico duty-free if the parts are processed and the product is then exported to the United States, while the U.S. assesses duty only on the value added in Mexico. It is estimated by the Department of Commerce that in 1989, almost one-fourth of total U.S.-Mexico trade took place under the speci
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