Why is NAFTA a freetrade area requiring rules of origin rather
Than a customs union?
A)A freetrade 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.

Question

Why is NAFTA a free­trade area requiring rules of origin rather
Than a customs union?
A)A free­trade 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.

Quizplus · Accepted Answer

A free-trade agreement allows each nation to maintain its own politically sensitive tariffs, while a customs union requires a common external tariff. Therefore, NAFTA being a free-trade area requiring rules of origin enables the member countries to keep their respective tariffs unchanged.

Why Is NAFTA a Free­trade Area Requiring Rules of Origin

Why Is NAFTA a Freetrade Area Requiring Rules of Origin