Summary

About 2,000 "maquiladoras"--companies that use materials imported into Mexico to produce finished goods for export--are now operating in Mexico, primarily along the U.S. border. Any hazardous substances resulting from U.S.-supplied materials are, by agreement, to be readmitted to the United States for ultimate disposal. While the maquiladora industry has been operating for 25 years, Mexico's comprehensive environmental protection law is only four years old. U.S. and Mexican officials recognize the potential risks from the hazardous waste generated by maquiladoras, including contamination of groundwater on both sides of the border. This report (1) compares U.S. and Mexican hazardous waste laws and regulations, resources, and environmental practices and (2) assesses how the generation and ultimate disposal of hazardous waste from maquiladoras is handled.

GAO found that: (1) although U.S. and Mexican laws and regulations provide for a comprehensive program to manage hazardous waste, some differences exist; (2) Mexico enacted environmental protection legislation only 4 years ago, and Mexico is still developing regulations and enforcement standards similar to those in the United States for implementing hazardous waste requirements; (3) because U.S. and Mexican organizational structures were different and the total number of Mexican hazardous waste generators were not known, the two countries' resources and enforcement practices could not be fully compared; (4) Mexico has continued to develop its relatively new enforcement program in order to ensure that all companies, including the maquiladoras, comply with hazardous waste requirements; (5) due to inaccurate and incomplete information, neither the United States nor Mexico knew the number of maquiladoras that generate hazardous waste, the amount of hazardous waste generated, or the final disposition of that waste; and (6) the U.S. and Mexican governments will be unable to effectively implement a cooperative effort to track hazardous waste until more accurate and complete information is developed, as called for in the August 1991 draft Integrated Environmental Plan for the Mexico-U.S. Border Area.