NAFTA's Rules of Origin Unfairly Favor US Interests, Hurting Mexican Exporters
Rules of origin in trade agreements are meant to prevent products from being re-exported to avoid tariffs. However, political factors can make these rules stricter than necessary. A study on NAFTA found that political influences, especially from the United States, led to more stringent rules of origin. This increased production costs and reduced the benefits of market access intended by the agreement.