Eu vs Nafta
Abstract
The paper addresses important concerns of the European Union and the NAFTA, NAFTA’s functional structure. A brief introduction if NAFTA and EU confront one another.
Executive Summary
Some would doubt that the formation of NAFTA was the American response to the European Single Act that formed the EU, which is made up of 27 countries. There is nothing to gain for both the blocs. However in some areas, “peaceful co-existence” and some form of “stricter ties” between the EU and NAFTA would prove to be beneficial for both.
Introduction
The NAFTA and the European Union comprising of 27 countries comprise the biggest blocs in the world. The two trade blocs are also highly interdependent through foreign direct investment. In 2007, stocks of FDI in the NAFTA were 1.25 trillion euros while relevant figure of the NAFTA in the EU bloc was about 1.15 trillion euros. In 2008, the value of exports of goods and services from the EU to NAFTA region amounted to 450.2 billion euros. While the value of import of goods and services to the EU from NAFTA bloc amounted to 362.1 billion euros.
The main objectives of my paper are: 1) To compare the level of integration of * Free Trade Area: No tariff between member countries and external trade barriers remain and vary from country to country * Custom Union: No tariff between member * Common Market: No tariff between member countries and external trade barrier and free movement capital and labor within the common market * Economic Union: Common market, single currency, common monetary and fiscal policy 2) To compare the impact of integration
Both the EU and the NAFTA integration regime have related hopes for economic changes.
The integration blocs are a group that agrees to do: * Eliminate/remove/abolish (internal) trade barrier * Organize external trade barriers to establish union * Allowing capital to move freely * Allowing labor to move freely * Manage indirect tax policy
The paper addresses important concerns of the European Union and the NAFTA, NAFTA’s functional structure. A brief introduction if NAFTA and EU confront one another.
Executive Summary
Some would doubt that the formation of NAFTA was the American response to the European Single Act that formed the EU, which is made up of 27 countries. There is nothing to gain for both the blocs. However in some areas, “peaceful co-existence” and some form of “stricter ties” between the EU and NAFTA would prove to be beneficial for both.
Introduction
The NAFTA and the European Union comprising of 27 countries comprise the biggest blocs in the world. The two trade blocs are also highly interdependent through foreign direct investment. In 2007, stocks of FDI in the NAFTA were 1.25 trillion euros while relevant figure of the NAFTA in the EU bloc was about 1.15 trillion euros. In 2008, the value of exports of goods and services from the EU to NAFTA region amounted to 450.2 billion euros. While the value of import of goods and services to the EU from NAFTA bloc amounted to 362.1 billion euros.
The main objectives of my paper are: 1) To compare the level of integration of * Free Trade Area: No tariff between member countries and external trade barriers remain and vary from country to country * Custom Union: No tariff between member * Common Market: No tariff between member countries and external trade barrier and free movement capital and labor within the common market * Economic Union: Common market, single currency, common monetary and fiscal policy 2) To compare the impact of integration
Both the EU and the NAFTA integration regime have related hopes for economic changes.
The integration blocs are a group that agrees to do: * Eliminate/remove/abolish (internal) trade barrier * Organize external trade barriers to establish union * Allowing capital to move freely * Allowing labor to move freely * Manage indirect tax policy
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