The Mexican manufacturing sector located near the US border—the maquiladora sector—for example, seems to be recovering from an earlier wave of ‘outsourcing’ to China: bq. From ’00-03, about 900 maquiladoras closed, at a cost of more than 292,000 jobs. But business picked up in June ’04, exporting $7.7bn worth of goods, an all-time monthly high, and companies say they’ll invest $4.5bn in new or expanded operations in ’05, restoring or replacing some two-thirds of the lost jobs. Analysts attribute the comeback in part to resurging US consumer demand, the strong Mexican peso, and problems US manufacturers have encountered with China’s still-young industrial infrastructure. (“AP via The Economic Times (India)”:http://economictimes.indiatimes.com/articleshow/980718.cms)
Peter Gallagher is a leading Australian consultant on trade and public policy.[bio].
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