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You Are Eligible For 15% Discount This Month!…… 1. What new things about NAFTA have you learned from this sources? What surprised you?2. Visit the Website for NAFTA and locate each group’s rules of origin. Which group has the most liberal rules of origin? Why the difference? Here is some knowledge on rules of origin: NAFTA reduces tariffs only for goods made in North America. Tough rules of origin will determine whether goods qualify for preferential tariff treatment under NAFTA. Rules of origin are designed to prevent “free riders” from benefiting through minor processing or transshipment of non-NAFTA goods. For example, Japan could not assemble autos in Mexico and avoid U.S. or Canadian tariffs and quotas unless the auto had a specific percentage of Mexican (i.e., North American) content. For goods to be traded duty free, they must contain substantial (62.5 percent) North American content. Since NAFTA rules of origin have been strengthened, clarified, and simplified over those contained in the U.S.-Canada Free Trade Agreement, they supersede the CFTA rules. 3. What are NAFTA’s advantages? Disadvantages?

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