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NAFTA and North American Trade · US History

In terms of North American trade policy, what is the 'Rules of Origin' provision?

  1. A rule stating all products must be labeled in three languages
  2. A rule limiting how many jobs a company may outsource to another member country
  3. A tax on goods that were invented outside of the member nations
  4. A rule requiring mostly North American content for duty-free status
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Correct answer: A rule requiring mostly North American content for duty-free status

Rules of Origin prevent countries outside the agreement (like China) from using one member nation as a 'backdoor' to the others. It ensures that the benefits of the free trade zone stay within the member countries.

Difficulty: Medium Question 9 of 20

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