NAFTA 2.0 Is Completely Useless

For indispensable reporting on the coronavirus crisis and more, subscribe to Mother Jones' newsletters.

A while back I noted that the new USMCA treaty (i.e., NAFTA 2.0) would not increase American GDP. The government’s own analysis projects a GDP decrease of 0.12 percent, but then adds back 0.47 percentage points because they figure that newfound certainty in things like intellectual property rules will increase investment. This suggests that we might be better off just adopting the IP rules and skipping the rest.

But wait! Jeffrey Schott of the Peterson Institute for International Economics—normally the kind of place that loves trade treaties—says that even this is bogus:

Some supporters of the deal say it provides new rules that will benefit the U.S. But those “new” rules aren’t new. Rather they mirror provisions affecting labor, the environment and e-commerce from the revised Trans-Pacific Partnership that have been carried out by Mexico and Canada since that accord went into effect on Dec. 30, 2018. Trump withdrew from the TPP, but Canada and Mexico remained in it, and already apply these provisions in trade relations with the U.S.

Is this true? It seems like it. The main IP provisions of the USMCA are here. A side-by-side comparison with TPP is here. As near as I can tell, Canada and Mexico already agreed to all of USMCA’s IP rules when they signed onto TPP, with one exception: patent protection for biologics is ten years in USMCA compared to eight years in TPP. That’s about it.

Unless I’m missing something, Donald Trump has negotiated a treaty that favors Canada and Mexico when it comes to trade in goods, and does virtually nothing new to favor the US in IP law. It’s even more useless than I ever imagined.

POSTSCRIPT: Needless to say, if there are any legit trade experts out there who think I am missing something, please speak up!

Thank you!

We didn't know what to expect when we told you we needed to raise $400,000 before our fiscal year closed on June 30, and we're thrilled to report that our incredible community of readers contributed some $415,000 to help us keep charging as hard as we can during this crazy year.

You just sent an incredible message: that quality journalism doesn't have to answer to advertisers, billionaires, or hedge funds; that newsrooms can eke out an existence thanks primarily to the generosity of its readers. That's so powerful. Especially during what's been called a "media extinction event" when those looking to make a profit from the news pull back, the Mother Jones community steps in.

The months and years ahead won't be easy. Far from it. But there's no one we'd rather face the big challenges with than you, our committed and passionate readers, and our team of fearless reporters who show up every day.

Thank you!

We didn't know what to expect when we told you we needed to raise $400,000 before our fiscal year closed on June 30, and we're thrilled to report that our incredible community of readers contributed some $415,000 to help us keep charging as hard as we can during this crazy year.

You just sent an incredible message: that quality journalism doesn't have to answer to advertisers, billionaires, or hedge funds; that newsrooms can eke out an existence thanks primarily to the generosity of its readers. That's so powerful. Especially during what's been called a "media extinction event" when those looking to make a profit from the news pull back, the Mother Jones community steps in.

The months and years ahead won't be easy. Far from it. But there's no one we'd rather face the big challenges with than you, our committed and passionate readers, and our team of fearless reporters who show up every day.

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate

We have a new comment system! We are now using Coral, from Vox Media, for comments on all new articles. We'd love your feedback.