Why Is NAFTA a Free-Trade Area Requiring Rules of Origin

question 99

Multiple Choice

Why is NAFTA a free-trade area requiring rules of origin rather than a customs union?

• A) A free-trade agreement allows politically sensitive tariffs of each nation to remain unchanged.
• B) A customs union also requires rules of origin.
• C) The overall level of U.S. tariffs was much higher than the overall level of tariffs in Mexico and Canada.
• D) The overall levels of tariffs in Canada, Mexico, and the United States are similar, making rules of origin irrelevant.

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