CBLE CBLE Trade Agreements and Free Trade Programs 1 — Questions and Answers
Question 1: Which agreement replaced NAFTA and governs trade between the United States, Canada, and Mexico?
- CAFTA-DR
- USMCA (Correct answer)
- KORUS
- TPP
Correct answer: USMCA
The United States-Mexico-Canada Agreement (USMCA) replaced NAFTA and entered into force on July 1, 2020.
Question 2: Under the Generalized System of Preferences (GSP), which form is required to claim duty-free treatment for eligible goods?
- Form CF-7501
- Form A (Correct answer)
- Form CF-3461
- Form CF-4811
Correct answer: Form A
Form A (Certificate of Origin) is the document used to claim GSP duty-free treatment for eligible beneficiary developing countries.
Question 3: What is the primary criterion used to determine origin under USMCA for most goods?
- Wholly obtained criterion
- Tariff shift rule (Correct answer)
- Regional value content only
- Net cost method only
Correct answer: Tariff shift rule
USMCA primarily uses tariff classification change (tariff shift) rules to determine if goods qualify as originating.
Question 4: Which U.S. free trade agreement partner receives duty-free treatment under the Israel FTA for most goods?
- Jordan
- Egypt
- Israel (Correct answer)
- Saudi Arabia
Correct answer: Israel
The U.S.-Israel Free Trade Agreement, in force since 1985, provides duty-free treatment for most goods traded between the two countries.
Question 5: Under USMCA's de minimis rule, what percentage of non-originating content is allowed without triggering a tariff shift requirement?
- 5%
- 7%
- 10% (Correct answer)
- 15%
Correct answer: 10%
USMCA allows a de minimis tolerance of 10% of the transaction value or weight of non-originating materials that do not undergo the required tariff shift.
Question 6: CAFTA-DR covers free trade between the United States and which group of countries?
- Central America and Dominican Republic (Correct answer)
- Caribbean nations and Cuba
- South American nations
- Central America and Puerto Rico
Correct answer: Central America and Dominican Republic
CAFTA-DR (Central America Free Trade Agreement-Dominican Republic) includes Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic.
CBLE CBLE Trade Agreements and Free Trade Programs 1
Which agreement replaced NAFTA and governs trade between the United States, Canada, and Mexico?