Paper Topic:

NAFTA & EU

Running head : NAFTA EU

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Introduction

European Union (EU ) and North American free trade area (NAFTA ) are economic integration blocs which influences to a great deal the global economic activities . European Union is much larger than NAFTA comprising of 15 member states and a population of about 370 million people . NAFTA is made up of 3 countries with a population of 400 million people and has a GDP of about 11 trillion while EU has a GDP of 9 trillion . The two trading

blocs influence much of the global trade policies (Dominguez , 2007

This will evaluate the major similarities and differences of NAFTA and EU trading blocs

European Union and NAFTA

NAFTA , an acronym for North America free trade agreement is a trade agreement between the North America , Mexico and Canada . This trade agreement came into force in the year 1994 . Its main agenda is to increase trade amongst the member states and to increase economic development in this region . It sought to reduce trade barriers by eliminating tariffs to encourage direct investment . However , NAFTA is not a form of customs union because all the three member countries impose different tariffs on nations not member to this agreement . Also the three member states are allowed to form other free trade agreements with different countries . Another significant feature of NAFTA members is that they still hold their own currencies and the mobility of people is not free . The main goal of NAFTA agreement is to enhance...

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