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      A variety of social and economic factors link U.S. and Mexican border communities, and maquiladoras play a significant role in this interdependence.

      Trade figures indicate that the four U.S. border states account for about 62 percent of U.S. exports to Mexico, while 70 percent of these exports were destined for Mexican border states. Border communities are also drawn together socially by family and educational ties and economically by twin-plant production and retail commerce.

      Residents in the twin cities cross the border about one million times every day to work, shop, attend classes, visit family, and participate in other activities. The maquiladora sector, which relies heavily on imports from the United States and represents the principal industrial activity on the Mexican side of the border, drives cross-border economic integration as well as the increasing U.S.-Mexico interdependence. However, the border is a diverse region, and the extent of interdependence between communities along the border varies widely.

            After growing rapidly during the 1990s, Mexican maquiladoras experienced a sharp decline in production and employment after October 2000. In early 2002, employment in the maquiladora sector had contracted about 20 percent, losing nearly 290,000 jobs, and production had contracted about 30 percent. The decline was particularly severe in certain industries and cities. For example, maquiladora employment in...

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