Question

What are the key difference(s) between NAFTA and EU? (List and explain)

Answer 1

The main difference between the North America Free Trade Organization (NAFT) and European Union (EU) can be said as they have many similarities as well as dissimilarities. The main differences are the

• scope,
• currency,
• freedom for movement ,
• the members included

and so on.The main difference present which distinguish the NAFT from EU are the standard antitrust strategies.EU comprises it since 1994 which made them unique. Also it should be considered that the status over worldwide and the economy of united states are much advanced as compared to that of the dimension and the population of Mexico and Canada.

• MEMBERS

NAFT include their agreements on UNTIED STATES,CANADA and MEXICO where as members of EU initially were NETHERLANDS, WEST GERMANY, LUXEMBOURG, BELGIUM, ITALY and FRANCE. But now EU have expanded its members with 27 associated states which are Austria,Bulgaria, Croatia, Republic of Cyprus,Czech Republic, Denmark, Estonia, Finland, Greece,Hungary,Ireland, Latvia, Lithuania, Malta,Poland, Portugal,Romania, Slovakia, Slovenia, Spain, Sweden and the UK.

• SCOPE

Now coming to the scope NAFT is purely economic union whereas EU is an economic and political union. NAFT is an business agreement concern with the trades and business of North America mainly.it is purely aims at the economic progress which aids to eliminate the economic barriers, customs law protection and spreading of customs laws, government procurements, also it contains steps of dispute settlements, also the matters related to the trade among these 4 countries coming under NAFT and also facilitates trade among them. They don’t interfere in political territorial and social issues or matters. They even don’t aims with policies or procedures to include these fields too. But EU include both economic and political policies. EU have been developed political strategies while promoting the economic ties so as to ensure the stability and peace among Europe and the entire world.through these policies EU can ensure the freedom of every citizens of countries under EU to travel for different purpose in EU countries without the visa or permits.this promote and ensure the freedom , security and also justice all over.it can improve the mobility of goods , people, and capital efficiently.also enables a competitive economic market as well as reduces and eliminate social discriminations.

• CURRENCY

By the political and economic agreements of EU have resulted in the creative formation of a new single currency by their own known as EURO.also it become a success by the initiation to adopt euro as the currency of the country by different countries.NAFT doesnot had the strategy to create a new currency they just maintained the currency they used.

• MOVEMENT

Movement of citizen ,goods, capital, trades NAFT facilitates them in the 3 countries ie; CANADA,US and MEXICO.but the complete freedom for the travelling cannot be ensured by the NAFT since there are restristics to the free mobility of people between Mexico and US as well the free migration between US and Canada is merely more strict.But in the case of EU EU citizens are treated asthe citizens of own country in every EU member countries as a part of their stratergy.

Both have so many similarities as well asdissimilarities NAfT is a pure economic union which is lesser in size and scope is with in a limit which tries to reduce the trade barriers amoung the member countries.its access for different countries are not much stringer as compared to EU.It can be said as a bilateral agreement between 3 countries to reduce conflicts and war in the likelihood and expand the trade and promote emergence of an economic bloc. Whereas EU is a complex economic and political union which evolved a political , territorial , social and economic stable strategically union which was started with a pure economic agreement for trade. They expanded their domain such that they not only dominated 28 members but also improved the trade worldwide.