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Planning For Free Trade: Taking Advantage Of The Transition., John M. Vernon, Enrique A. Gonzalez Calvillo
Planning For Free Trade: Taking Advantage Of The Transition., John M. Vernon, Enrique A. Gonzalez Calvillo
St. Mary's Law Journal
After two decades of restrictive policies regarding foreign involvement, Mexico is transforming its legal and regulatory structure. The progression of foreign investment, technology transfer, and industrial property laws and regulations is revealing. The significance of the overhaul of the industrial property and technology transfer framework in Mexico is evident considering the historical context in which it developed. With these reforms in place, Mexico significantly improved the conditions for placing U.S. franchises across the border. Mexico decreased tariff rates, eliminated import licenses for numerous products, and divested over half of the businesses previously owned or operated by the state. It also …
Federal Income Tax Issues In The Organization, Financing, And Operation Of Maquiladoras., William R. Leighton, T. Richard Sealy Iii
Federal Income Tax Issues In The Organization, Financing, And Operation Of Maquiladoras., William R. Leighton, T. Richard Sealy Iii
St. Mary's Law Journal
This Article principally considers various United States federal income tax issues in the formation, financing, and operation of maquiladoras. Mexico’s most successful means of attracting foreign investment is its Maquiladora Program. Mexico created the program to encourage U.S. and other non-Mexican enterprises to establish manufacturing facilities in Mexico. It spawned a domestic industry whose economic output is second only to that of Mexico’s national oil industry. In the 1980s, the maquiladora industry experienced explosive growth from 620 plants in 1980 to more than 2,000 currently. They employ approximately 500,000 workers earning an average wage of five dollars per day plus …