The objective the NAFTA is to reduce barriers to U.S. exports, protect U.S. interests competing abroad, and enhance the rule of law in the FTA partner country or countries. In order to get a Free Trade Agreement there is a standard they have to meet. In order for a U.S. product to be eligible for duty-free entry into Mexico or Canada, the product must be produced in the United States, entirely of NAFTA component parts, or if foreign components are used, the foreign component must undergo sufficient processing in the United States to meet the rules of origin. Specifically the rules in the Annex 401: rules of origin, Annex 300-B for textile and apparel goods, or the Tariff Preference Levels. There are four basic rules of the Annex 401: rules
