American Free Trade Agreement ( Nafta )

1584 Words Feb 29th, 2016 7 Pages
The purpose of this memorandum is for Monet’s Treats to consider doing business globally with Mexico first. This expansion will broaden its culture, expertise and ethics as well as entering into new, potentially profitable market segments. Monet’s Treats were created in 2005 in a small home kitchen in West Orange, New Jersey. Throughout the last ten years they have continuously experienced an annual five percent each year. After receiving a few inquires over the last 2 years between Mexico and Japan, Monet should fully consider expanding to Mexico as a stepping stone to full global expansion. Addressing the aspects of U.S. laws, legal and ethical implications that are involved with this decision will allow Monet’s Treats to properly prepare for its expansion.
Monet’s Treats should be aware of a few U.S. laws while perusing its goals to do business internationally. North American Free Trade Agreement (NAFTA) is designed to remove tariff barriers between the three countries, Mexico, United States, and Canada. Attempting to expand in Mexico can bring issues to Monet’s Treats with importing and exporting goods. Especially, since the product will be manufactured in the United States. In Bestfoods (formerly known as CPC International, INC.), v. United States appeal case, Bestfoods had to include markings indicating part of the product originated in Canada. According to 19 C.F.R. § 134.35(b), there is an exception that a good of a NAFTA country that is to be processed in the…
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