NAFTA simplifies country-of-origin rules, hindering Japan's use of Mexico as a staging ground for further penetration into U.S. markets.

Question

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NAFTA's country-of-origin rules require that goods produced in Mexico must contain a certain percentage of North American components to qualify for duty-free treatment. This makes it more difficult for Japanese manufacturers to use Mexico as a base for exporting goods into the U.S. market.

NAFTA Simplifies Country-Of-Origin Rules, Hindering Japan's Use of Mexico as a Staging