t or value of such products of the United States.
             The second phase of the maquila industry featured Mexico's entrance to the GATT as well as numerous peso devaluations. These devaluations of Mexican peso made labor even cheaper making it very profitable for U.S. companies. As a result, the number of maquiladoras increased significantly. During the administration of president De la Madrid (1982 – 1988) a number of policy changes occurred. He saw maquila industry as a good source of foreign exchange and jobs, as well as a strategy for industrialization in Mexico. A decree in 1983 encouraged foreign companies to set up maquilas in less developed areas of the country and it also implored the companies to purchase inputs from domestic suppliers. The peso devaluations during De la Madrid's administration reduced real wages by 40 percent making Mexican labor even more externally competitive.
             The third and "final" phase in the maquila industry's history centers around the NAFTA, which calls for the removal of tariffs between Canada, Mexico, and the
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