Fiscal Reform Could Be Bad for Mexico's Maquiladora Export Industry Jill Replogle - KPBS.org
go to original September 21, 2013

The Border Committee of Women Workers runs a small textile shop in Piedras Negras promoting fair trade practices. (Hernán Rozemberg)

The maquiladora export industry that’s a key component of the U.S.-Mexico border economy could face major changes under proposed reforms to Mexico’s tax system.

Mexico currently collects fewer taxes from its citizens and companies than almost any other developed country. Mexico relies heavily on revenues from its state-run oil industry, which is in decline.

Mexican President Enrique Peña Nieto wants to change this. One way he wants to do it is by tightening control over the country’s vast maquiladora export industry.

Factories that make and export goods to the U.S. and other foreign markets currently don’t pay taxes on their raw materials and machinery. But that would change under the proposed reform.

Read the rest at KPBS.org

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