Question

differentiate between WTO, NAFTA and EU in terms of basic functions and member countries.

Answer 1

The European Union (EU) constitutes one of the world's regional economic groups. There are 27 EU member states and they're all located in Europe. The European Union has experienced six expansions from 1957 to 2007, and the European Union has become one of the most economically and politically integrated regions in the world over the last sixty years. The North American Free Trade Agreement (NAFTA) has, however, also formed its unique global trade bloc in North America. The NAFTA was founded in 1994 and includes the United States, Canada and Mexico. NAFTA's aim is to eliminate Member States' trade barriers. While EU and NAFTA are important integrated regions of the world,

The World Trade Organization is an institution based on membership, with 162 member states. The aim is to regulate international trade by setting standards, reducing barriers to trade and settling disputes among member nations.

NAFTA is a regional agreement between three countries: the United States, Canada and Mexico. This regional institution is creating a trade bloc or area of free trade that goes a little further than the WTO.

In essence, the key differences are the WTO with many members being international, while NAFTA is regional and localized.

Although the NAFTA contains only three countries, the competitiveness may be comparable with the European Union. Specifically, NAFTA has a greater advantage, as opposed to the EU. America's GDP is 10 times that of Mexico, meaning that the gap between rich and poor is bigger than that of EU members. The greatest benefit of regional economic integration is complementary trade between the region's members. It could bring both sides the most advantage. The Member States are all developed countries for the European Union, and the level and the situation of development is similar

The difference is in Regional Economic Integration level. There are five levels that are respectively free trade area, customs union, common market, economic union, and political union The highest extent of national integration is a political union, the lowest is a free trade area. Each REI level fuses the properties of the preceding level. They belong to different levels, for the EU and NAFTA.