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Entire Book - Southwest Consortium for Environmental Research ...

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Improving Transboundary Air Quality with<br />

Binational Emission Reduction Credit Trading<br />

maquila industry has been phased out as part of the North American<br />

Free Trade Agreement (NAFTA). The decline of the maquila industry<br />

has been felt on the U.S. side as well. Border tariffs were down<br />

10% in 2001 (GAO 2003).<br />

Employees<br />

Figure 1. U.S. Industrial Production v. Maquila<br />

Employment<br />

1,400,000<br />

1,350,000<br />

1,300,000<br />

1,250,000<br />

1,200,000<br />

1,150,000<br />

1,100,000<br />

1,050,000<br />

1,000,000<br />

Jan-00<br />

Jul-00<br />

Jan-01<br />

Sources: Federal Reserve Board of Governors; INEGI<br />

The maquila industry is likely to be a major player in any emissions<br />

trading program developed on the border, so conditions in the<br />

maquila industry will be important in determining the success of<br />

emissions trading. The current adverse conditions, one might think,<br />

would limit interest in establishing an emissions trading program.<br />

To test this, a survey of maquilas was conducted in Ciudad Juárez,<br />

Matamoros, and Reynosa. Two basic findings were made: There is<br />

considerable confusion about emissions trading, and despite the<br />

downturn in the maquila industry, there is interest in finding out<br />

more about it. This chapter summarizes the survey results.<br />

78<br />

Jul-01<br />

Months<br />

Maquila Employment<br />

U.S. Industrial Production<br />

Jan-02<br />

Jul-02<br />

117<br />

116<br />

115<br />

114<br />

113<br />

112<br />

111<br />

110<br />

109<br />

108<br />

Dollars (percent of 1997 average)

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