The European Union (EU) vs the North American Free Trade Agreement Essa

The European Union (EU) vs the North American Free Trade Agreement Introduction The European Union (EU) is the organization which integrates the countries listed below, both politically and economically. It is a customs union, which is an agreement amongst a group of countries to eliminate trade barriers between them on the movement of goods, services, labor and capital, and also to establish a common external tariff on goods and services coming into the union. The EU evolved from the European Coal and Steel Community (ECSC), which was formed in 1951 as a response to the First and Second World Wars to try to ensure future peace in Europe. This became the European Economic Community (EEC) in 1965, which in turn became the European Union in 1992 following the signing of the Maastricht Treaty. The North American Free Trade Agreement (NAFTA) has brought economic growth and rising standards of living for the people of all three member countries since 1994. As well, by strengthening the rules and procedures governing trade and investment throughout the continent, NAFTA has proved to be a solid foundation for building Canada’s future prosperity. NAFTA has enabled both Canada and Mexico to increase their exports to the United States: Canadian manufacturers now send more than half their production to the U.S., while Mexico’s share of the U.S. import market has almost doubled from 6.9% in pre-NAFTA 1993 to 11.6% in 2002. Manufacturers in all three countries are better able to realize their full potential by operating in a larger, more integrated and efficient North American economy. In 2002, Canada was the most important destination for merchandise exports from 39 of the 50 U.S. states. Relevant Sections Trading Blocs .. ...ading blocs: the growth of regionalism in the world economy’, New York: John Wiley & Sons. Hopkinson, N. (1992) ‘Completing the GATT Uruguay Round: renewed multilateralism or a world of regional trading blocs’, Wilton Park Paper No. 61 London. Hunt, D. (1989) ‘Economic theories of development: an analysis of competing paradigms’, New York: Harvester Wheatsheaf. O’Brien, R. (1992) ‘Global financial integration: the end of geography’, London: Pinter. Preeg, E. M. (1989). The GATT trading system in transition: an analytic survey of recent literature. The Washington Quarterly 12, 201-213. Schott, J.J., ed. (1989) ‘Free trade areas and U.S. trade policy’, Institute for International Economics, Washington, D.C., p. 59 United Nations Conference on Trade and Development (UNCTAD) (1999) ‘Handbook of Trade and Development Statistics’, Geneva: United Nations.