(NAFTA is currently being renegotiated,but was still in force at the beginning of 2019.) What is the fundamental guiding principle of the North American Free Trade Agreement (NAFTA)?

Question

Quizplus · Accepted Answer

The fundamental guiding principle of NAFTA is national treatment, which requires that each country treats the products, services, and investment of the other countries in the same way it treats its own. This principle promotes free trade by removing discriminatory measures, subsidies, and other barriers to trade among the three member countries (Canada, Mexico, and the United States). Countervailing duties (A) are imposed to offset the effect of subsidies in the exporting country to prevent unfair competition. Most-favoured-nation status (B) is a trade agreement provision that requires each country to treat the other countries in the same way it treats its most favoured trading partner. Protectionism (D) is the policy of protecting domestic industries from foreign competition by imposing tariffs, quotas, or other barriers to trade. Strategic trade policy (E) is a government policy that aims to promote the growth and competitiveness of certain industries by providing subsidies, tax breaks, or other incentives to domestic firms.

(NAFTA Is Currently Being Renegotiated,but Was Still in Force at the Beginning