The North American Free Trade Agreement (NAFTA) is an agreement signed by the governments of Mexico, Canada and the United States. It creates a three way trade bloc in North America. The agreement was made on January 1, 1994. The trade bloc is the largest in the world as of 2010. The European Union (EU) is an economic and political union of 27 member states which are located mainly in Europe. Its capital is de facto Brussels. The EU operates through a system of independent institutions and intergovernmental negotiated verdicts by the member states.
Important institutions of the EU include the Council of the European Union, the European Commission, the European Council, and the European Central Bank. The European Parliament is elected every five years by EU citizens.
The EU allows free trade in between 27 very powerful economies, provides coordinated environmental legislation, free movement of goods and citizens between countries, and it provides support for minority languages within Europe. NAFTA enables a food corporation in Sioux Falls, South Dakota to increase profits and sales across Canada, but it also caused many jobs to be lost in South Dakota.
NAFTA allowed many of U.S. manufacturers to move jobs to lower-cost Mexico. The manufacturers that remained lowered wages to compete with those industries. Many of Mexico’s farmers went bankrupt because of business by U.S.-subsidized farm products. U.S jobs were lost and wages were suppressed. In response to competitive pressure, Mexico agricultural business used more fertilizers and other chemicals, resulting in the deterioration of Mexico’s environment.
In the EU commissions hold much more power than the head of state, councilor as well as the elected parliament. Another thing is that it’s making the fishermen lose their jobs because they aren’t getting a sufficient amount of business. The European Union like NAFTA, there are a lot of trade agreements between the countries, in what is also referred to as the Common Market. The EU is more advanced than NAFTA, covering a lot of other aspects of relationships between the countries. The three member countries use their own currencies in NAFTA, while people in EU have a single currency called Euro. EU is a distinct political entity while NAFTA is just an agreement meant to foster trade between member countries. NAFTA only has 3 member countries and The EU has 27.