Institute for Regional Studies of the Californias

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Tijuana, Basic Information Page 6

provided for higher tariffs for components imported from outside the NAFTA region. The late 1994 devaluation of the peso versus the dollar, which reduced real wages in dollar terms in the maquiladora industry, reduced costs for Mexican maquila operations and stimulated additional investment in the industry in Tijuana.

In 2001, the special legal regime under which the maquiladora enjoyed special status will be eliminated as part of the NAFTA process. There is much apprehension in the industry regarding how the Mexican government will tax and regulate maquilas. Despite a shifting regulatory framework, the basic factors that account for the location of maquiladoras in Tijuana will not change--a plentiful supply of low cost labor and nearness to the U.S. market.

Environmental Issues

Tijuana suffers from many environmental problems that effect quality of life and human health in the region. Most of these problems are related to infrastructure deficiencies.

I. Sewage. A major water-related issue for the Tijuana region is the inadequate sewage collector and treatment system. Many colonias are unsewered and residents use pit privies or discharge human waste into canyons. Some 65,000 families are without waste water collection and treatment services. Running and standing water contaminated by sewage is found in many low-income residential areas and human contact, particularly by children, is a significant problem. High rates of gastro-intestinal diseases, hepatitis, and other diseases transmitted by impure water are major public health problems and are reflected quite directly in Tijuana's high infant mortality rate.

Only a portion of the city's sewage is treated in the Punta Bandera plant, about 5 km south of the international border on the coast. Designed for approximately 20 million gallons per day capacity, the plant now treats
more than 25 million gallons per day. The inadequately processed sewage is discharged into the surf at San Antonio de los Buenos and contributes to bacterial contamination of the adjacent beaches.

Renegade sewage flows characterize almost all of the canyons of Tijuana where colonias are located. For many years, some 12-15 million gallons per day of sewage flowed through the channelized river across the border into the Tijuana Estuary. This flow is now intercepted and treated by a new binational sewage treatment plant. In addition, there is transborder flow from all the canyons that cross the border into the United States. During periods of winter rains, this flow increases substantially, as rain water picks up human waste and chemical wastes that were disposed of illegally.

The United States and Mexico recently completed a binational treatment plant, the International Waste Water Treatment Plant, to resolve the problem of Tijuana's untreated sewage. The project, located in San Diego adjacent to the international boundary, includes a 3-mile ocean outfall as well as a water reclamation plan that is now under construction. As the treatment plant becomes fully operational, it will treat waste water that cannot be handled by the Punta Bandera plant, including the flow through the channelized Tijuana River. The new plant will reduce the flows of renegade sewage into the Tijuana River in San Diego, except during storm events.

Although the new plant has added significant treatment capacity, it will need to be expanded in the not too distant future, given the rapid population growth of Tijuana.

II. Hazardous and Industrial Waste. Only a portion of hazardous waste from Tijuana's maquilas and other industries is disposed of in a fashion that would meet international standards and Mexican regulations. The remainder is stored (often improperly), dumped into municipal landfills, or discharged into the wastewater collector system. Solvents used in the electronics industry and
heavy metals associated with metal finishing operations seem to be the most common problems. In recent years, there has been significant improvement as most large, foreign-owned maquilas have come into compliance with Mexican environmental regulations. A few large companies and many small and medium firms remain a serious problem.

Small maquiladoras and Mexican businesses such as paint shops, furniture manufacturers, and automotive repair shops are problematic, particularly with the use of solvents and improper disposal of small quantities of chemical wastes that have a large cumulative effect. Reclamation of sewage is made impossible or prohibitively expensive when the water to be reclaimed is significantly polluted by chemicals.

There have been a number of serious pollution incidents related to manufacturing plants in Tijuana. Alco Pacific, a battery recycling plant, contaminated a neighborhood of Tijuana with its smelter and improper disposal of waste at the plant site. The company abandoned the site and the case was eventually prosecuted in the United States. The company paid a large fine that was used for an outreach program in the neighborhood and the president was sentenced to a prison term. The contaminated site still exists and continues to impact the surrounding area.

Lack of adequate hazardous waste treatment, recycling, and disposal infrastructure is a serious problem for Tijuana. Not only does this situation contribute to environmental problems, but it constitutes a bottleneck for the expansion of industry and related economic activities.

III. Solid Waste. In recent years, the municipal government has made a significant effort to improve collection of solid waste. About 96 percent of the population now has solid waste collection service. Current generation of solid waste from residences and businesses in Tijuana is about 1,500 tons per day,

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