Here is a question on free trade.
Country X and Country Z have a free trade agreement. If Country X buys trucks from Country Y and sells the trucks to a car dealer in Country Z, does the buyer need to pay duty on trucks. Why or why not?
I think that yes, because good that are made in other nations and imported into a NAFTA nation do not qualify for free trade..Is this right?
To determine whether the buyer needs to pay duty on trucks in this scenario, we need to consider the rules and terms of the free trade agreement between Country X and Country Z. It is important to note that every free trade agreement may have different provisions and specifications.
However, based on the information provided, it is unclear whether Country X and Country Z have a free trade agreement specifically pertaining to trucks. Free trade agreements typically cover specific industries or sectors, and it is possible that the agreement between these countries does not include trucks.
If trucks are not explicitly included in the free trade agreement, then the buyer would likely have to pay duty on the trucks. Duty is a tax or fee imposed on goods when they are imported from one country to another. Without the presence of a specific provision in the free trade agreement exempting trucks from duty, the buyer would be subject to the regular import duty rates.
To confirm whether the buyer needs to pay duty on trucks, it is recommended to refer to the specific free trade agreement between Country X and Country Z. This agreement should provide details on the covered goods, provisions, and any exceptions or exemptions specific to tariffs or duties on trucks.