Rules of Origin, the Canada-U.S. FTA, and the Honda Case

In a regime of universal most-favored-nation treatment for the entry of goods, where a product originates makes very little difference, except for consumer preferences. Buyers may prefer perfumes made in France, watches from Switzerland, cheese from Holland, but cheese from France, perfumes from Switzerland, and watches from Holland will come into the United States, or Canada, or any other country that grants MFN treatment at the same rate of duty, and there is no incentive (for tariff purposes) for anyone to wrap a product made in Patria in the mantle of Xandia.