The United States-Mexico-Canada (USMCA) Agreement is essentially a revised version of the former North American Free Trade Agreement (NAFTA). The NAFTA, which came into force in January 1994, aimed at reducing the import and export tariffs between the three-member nations to strengthen trade and the overall economic hold of North America.
The USMCA was signed in 2018 and finally introduced in 2020 to enhance the laws defined in the NAFTA. The modified version- NAFTA 2.0 or the USMCA increased the tariffs on digital products, reinforcing copyright provisions. It also expanded the copyright protection from 50 to 70 years.
Another notable update about the new treaty is that the three government bodies will conduct a review meeting every six years for up to 16 years and rectify the inadequate provisions and cover additional trade details between US, Mexico and other members . However, the treaty will expire post the designated period unless the member countries wish to extend it.
If one were to chart out a Venn Diagram between the two trade agreements, the overlap would be substantial but USMCA would certainly have a much more substantial exclusivity given its comprehensive nature.
Listed below are some other significant differences between the NAFTA and the USMCA.
