How Technological Changes Will Impact Nafta Talks

The video discusses how parts of NAFTA have become outdated due to technological advancements, particularly in the automotive industry. It highlights the complexities of trade involving Mexico, Canada, and China, and the challenges in determining the origin of imports. The use of harmonized codes (HS codes) for tracking imports is explained, emphasizing that tracking and understanding supply chain components is not as difficult as it seems.

What is one reason why parts of NAFTA have become outdated?

• The agreement was never implemented.

• Technological advancements have changed the landscape.

• The agreement was only meant to last 10 years.

• NAFTA only applies to agricultural products.

Why is it challenging to determine the origin of components in products traded between countries?

• There are no rules governing international trade.

• All products are made in China.

• Products are often made from parts sourced from multiple countries.

• Countries do not keep records of imports.

What is a harmonized code (HS code) used for?

• To identify the manufacturer of a product.

• To calculate taxes for exported goods.

• To classify imports and track the origins of goods.

• To determine the price of a product.

How do companies and countries keep track of the origins of goods?

• By using harmonized codes and meticulous record-keeping.

• Through random inspections.

• By relying on customer feedback.

• Through annual trade conferences.

What is the main focus of the final section of the transcript?

• The benefits of NAFTA.

• The challenges of international trade.

• The use of HS codes to track imports.

• The history of trade agreements.