1. Differences between NAFTA and USMCA can be identified from the reduced trade restrictions among three countries. USMCA has been established with the influence of President Trump for making a few alteration that was there in NAFTA. Sunset clause is different in NAFTA and USMCA. There is no mention of automatic sunset clause to the agreement in NAFTA. On the other hand, USMCA is there only for 16 years. The three countries will negotiate and fix the problems after six years (Chepeliev et al. 2018). The tariff system has been increased to 75% in USMCA, which was zero tariff in NAFTA.