Definition: Rules of Origin

Rules of Origin - "under free trade areas, regulations necessary to ensure that a majority of the value-added originates in member countries. For example, in the North American Free Trade Area (NAFTA), these rules prevent Asian and European companies from establishing assembly operations in which less than 50 percent of value-added originates in Mexico, using that country as a back door to U.S. and Canadian markets." - source: Economic Development 4th Edition by E. Wayne Nafziger