<p>"Rules of origin" cover this. Try </p>

<ul>
<li>Wikipedia <a href="https://en.wikipedia.org/wiki/Rules_of_origin" rel="nofollow noreferrer">https://en.wikipedia.org/wiki/Rules_of_origin</a> or </li>
<li>WTO: <a href="https://www.wto.org/English/tratop_e/roi_e/roi_info_e.htm" rel="nofollow noreferrer">https://www.wto.org/English/tratop_e/roi_e/roi_info_e.htm</a>  or </li>
<li>EU: <a href="https://ec.europa.eu/taxation_customs/business/calculation-customs-duties/rules-origin_en" rel="nofollow noreferrer">https://ec.europa.eu/taxation_customs/business/calculation-customs-duties/rules-origin_en</a> or </li>
<li>USA: <a href="http://2016.export.gov/FTA/nafta/eg_main_017791.asp" rel="nofollow noreferrer">http://2016.export.gov/FTA/nafta/eg_main_017791.asp</a> </li>
</ul>

<p>Essentially the rules tell someone trading between two places with a free trade agreement in which circumstances something partly originally imported from a third country (whether under another free trade agreement or having paid an original tariff) can be freely traded under the agreement</p>

CC BY-SA 3.0
2017-07-04T10:01:55.983Z
2017-07-04T10:16:37.970Z
2017-07-04T10:16:37.970Z
Henry
<p>The CETA trade deal is supposed to involve only the EU and Canada, but Canada has already a trade deal with the USA and Mexico : I don't understand how this is possible. 
For example, if I own one company in Paris, one company in Toronto and one company in New York, I can sell my product to myself from Europe to Canada and then from Canada to the US (or all in reverse). How could any tariff apply in such a case ? (my product never crossed a "trade border", yet it moved freely from EU to USA )</p>

CC BY-SA 3.0
2016-11-03T23:27:16.820Z
Similar question: http://economics.stackexchange.com/questions/14083/eu-canada-comprehensive-economic-and-trade-agreement
Matthias dirickx
CC BY-SA 3.0
2016-11-04T17:24:36.083Z
An interesting topic is how rules of origin are cheated. http://belarusdigest.com/story/belarus-and-russian-food-embargo-success-story-23073
snoram
<international-trade>
EU and North America with CETA
shadok
# EU and North America with CETA

(Asked by: username_0 on 2016-10-31)

The CETA trade deal is supposed to involve only the EU and Canada, but Canada has already a trade deal with the USA and Mexico : I don't understand how this is possible.
For example, if I own one company in Paris, one company in Toronto and one company in New York, I can sell my product to myself from Europe to Canada and then from Canada to the US (or all in reverse). How could any tariff apply in such a case ? (my product never crossed a "trade border", yet it moved freely from EU to USA )

**Tags:** international-trade
> **Comments:**
> **username_1**: Similar question: http://economics.stackexchange.com/questions/14083/eu-canada-comprehensive-economic-and-trade-agreement  
> **username_2**: An interesting topic is how rules of origin are cheated. http://belarusdigest.com/story/belarus-and-russian-food-embargo-success-story-23073  

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## 1 answers

### Answer by username_3 on 2017-07-04. Score: 2 | Accepted answer

"Rules of origin" cover this. Try

* Wikipedia <https://en.wikipedia.org/wiki/Rules_of_origin> or
* WTO: <https://www.wto.org/English/tratop_e/roi_e/roi_info_e.htm> or
* EU: <https://ec.europa.eu/taxation_customs/business/calculation-customs-duties/rules-origin_en> or
* USA: <http://2016.export.gov/FTA/nafta/eg_main_017791.asp>

Essentially the rules tell someone trading between two places with a free trade agreement in which circumstances something partly originally imported from a third country (whether under another free trade agreement or having paid an original tariff) can be freely traded under the agreement


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