Question

Agreements like NAFTA and EU present both opportunities as well as challenges. Discuss some of these. In your opinion, are such agreements overall positive or negative? Explain your answer.

Answer 1

In terms of population, aspect, the size of its economy, and world status, the United States is advanced than Canada and Mexico. In the exception of a few specified regions, the North American Free Trade Agreement (NAFTA) does not have the normal European Union (EU) competition policies, and these differences have increased since 1994. The exact date of the North American Free Trade Agreement (NAFTA) as a Council Regulation facilitated the standardization of competition laws in the EU while NAFTA did not formulate its own competition policies as originally envisaged

A single market encompasses all characteristics of a free trade region and convergence of customs, while the fourth feature is the absolute autonomy of output aspects. Resource mobility, manual labor, and technology are also included. Workforce mobility demands that countries that are trade union members adopt a universal visa policy and also a general stance on citizenship. Moreover, the member countries come up with common policies to support values, have reciprocal appreciation or approval of each other's actions, or agree on minimum steps.

The other gain is that both encourage free trade by bringing about economic integration. This characteristic aims to pursue economic integration through the harmonization of fiscal and monetary policies, the development of a common currency and the establishment of a super-national lead authority. The European Parliament, founded by countries of the European Union, is an example of a supranational leading power. Coming together politically is the crucial stage along the path of economic integration in the region. A democratic union occurs to the leaders of an international mix of both economic and political union.

The competition regulation of the European Union (EU) is not only uniform in terms of its strength but also relevant at national level. In the case, national competition law should only forbid what European Union law forbids, and should not allow what EU law does not permit. Contrary to this, NAFTA does not have common antitrust policies that are consistent right across its vicinity; however, the Parties ' antitrust rule can not prevent the performance of the party's desire without referring to any customary competition act but to their specific nationwide policy options. In fact, in most cases missing the least average does not bode properly for the efficient use of the antitrust law in the NAFTA region

They also have complicated policies that have been put in place to prevent third world countries from getting their goods through other parties, either directly or indirectly. They do so by making sure that the transaction costs are very high and they won't see the need to invest in the sector because the high tariffs would have led to very low profits in addition to the time and energy consumed. The regulations are strictly followed, and the legislation of separate treaties are designed to ensure that they are not blamed for following the policies.