Maquiladora Overview Maquiladora Overview 20142014

• The Border Industrialization Program, enacted in 1965 by the Mexican government, gave birth to the maquiladora industry. (today IMMEX).

• The main objective was reduction of high unemployment rates in communities along the border following the abolition of the Bracero farm labor program by the U.S.

• Maquiladora Industry was born in Ciudad Juarez in 1965

• Chihuahua is the largest employer in Mexico (26% of the country)

• The biggest bi national metropolitan area of Mexico and USA border.

• The seventh largest manufacturer center in North America.

Ciudad Juarez offers a solid infrastructure with remarkable quality at a competitive cost

and through reliability.

Ground Transportation(Highways)

Railroad Network3 Service Providers: Union Pacific, Burlington-Santa Fe and Ferromex

Telecommunications and Flights

Access to 2 international AirportsCd. Juarez – El Paso

Regional Ports of Entry / Border Crossings

(Annual Totals 2012)

789,283 Trucks

Maquiladoras established in Juarez

(by country of origen)

AutomoAutomotive tive

LeatherLeather

Source: INEGI

MEXICO

State of CHIHUAHUA

CD. JUAREZ

5,076

493

321

Source: INEGI

Source: Secretary of Economy

Source: Social Security

Source: INEGI / Social Security as of March 2012

Source: INEGI / IMSS

2,172,5482,172,548

394,847394,847

251,809251,809

Source: Social Security

2007 2008 2009 2010 2011 2012 2013 2014

239435 -7.04%-

21.62%7.91% 3.61% 7.33% 8.01% 11.36%

Growth Rate

Maquiladora in Cd. Juárez:Maquiladora in Cd. Juárez:

ImportsImports 23.5 Billion USD23.5 Billion USD

ExportsExports 48.1 Billion USD48.1 Billion USD

Foreign Direct Investment in Chihuahua

Mexico will become the

seventh largest economy in

the world in 2020

and contribute 7.8% of Global GDP,

 more than Russia and India.

  Jim O'Neill. (Director of Investment Funds at Goldman Sachs

Mexico Maquiladora industry proven

platform to build highly-competitive

industrial products U.S. and Mexico Natural

trade partners, to compete as a region in

global competition.

It is no longer U.S. versus Mexico.

It is Mexico and U.S. competing together as partners.

Harmonized and Business

Friendly Regulatory

FrameMutual

Recognition

COMPETITIVE EXPORT MANUFACTURING INDUSTRY IN MEXICO

Participating in

Certification Programs

Trusted Trader enabler of Facilitation

Rigth Border and Logistics

Infrastructure and

Securiy

TALENT DEVELOPMENT

DEVELOPMENT OF

SUPPLY CHAIN

PROMOTE INVESTMENT

BE THE MORE EFFICIENT BODER IN THE WORLD

OPTIMAZING CROSS BORDERS

MEXICO AND THE UNITED STAES ARE TO BE SEEN AS A WHOLE REGION

WORKING TOGHETHER IS THE ONLY PATH TO ACHIEVE RESULTS

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Maquiladora Overview Maquiladora Overview 20142014