How changes to NAFTA rules of origin could threaten supply chains

Modifications and revisions to the North America Free Trade Agreement (NAFTA) will impact sourcing decisions, supplier relationships, existing contracts and agreements and logistics. Once dismissed as campaign bluster, negotiations recently began with United States trading partners Mexico and Canada to revamp major sections of this important trade agreement.

Primary negotiations are focused on the rules of origin. While additional negotiations include digital trade, cross-border investment, intellectual property, and environmental issues, all new elements that did not exist during the construction of the original agreements, it is the changes to the rules of origin that seems to be the one creating the most uncertainty for supply chain pros.

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