A South Korean company manufactures goods in Russia using local labor and materials and then sends the goods to Mexico where the goods are put into packages labeled "Product of Mexico." The goods then transit through Toronto (so that no customs duties are paid) and enter U.S. Customs in Detroit.

(1) What is the country of origin of the goods? (2) Assume that Canadian authorities treat the goods as of Mexican origin so that they enter Canada duty-free. What tariff, if any, is due when the goods enter the United States?

(3) Assume instead that Canadian customs authorities fully tax the goods as non-NAFTA goods. Now the goods enter the United States. What tariff is due?