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Maquiladoras

México-Tesla Agreement: Mutually Beneficial Or One-sided?

March 20, 2023 Rubén Sierra, Council on Hemispheric Affairs. , , ,
On March 1, 2023, México’s President Andres Lopéz Obrador confirmed an agreement with Tesla that allows the electric vehicle company to build the “biggest electric vehicle plant in the world.” The plant, or maquiladora, will be located in the border state of Nuevo León within the industrial hub of Monterrey, México.” The plant will specifically be located in the Santa Catarina municipality. The agreement is governed by the United States-México-Canada Agreement (USMCA), previously known as the North American Free Trade Agreement (NAFTA). The México-Tesla partnership was announced just 10 days after the Mexican president issued an executive order which expedited the nationalization of the country’s lithium reserves.

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