The nature of the North American Free Trade Agreement (NAFTA) is specific that doesn’t comprise the standard antitrust strategies which are present in the European Union (EU) and these are the dissimilarities which have stretched since 1994. In expressions of the values, the dimensions and populations Mexico and Canada are not much advanced in worldwide status and economy as compared to The United States. NAFTA, as a council directive has endorsed the consistency of rivalry set of regulations in European Union (EU), though NAFTA has not been capable of improving its own contest strategies as originally considered. In addition to this, NAFTA doesn’t contain the common supranational traditions which are originated in the European Union (EU), for instance, they have no court of justice, no commission and this prohibits contest regulations from its argument conclusion practices that in converse split up in diversities on contest policies which are advanced to the World Trade Organization. The significance of this stipulation is that, at the present time, the European Union (EU) rivalry verdict is not only consistent at its greatness, however, also significant at the nationalized stage. The European Union (EU), on the other side, is a political and economic union in nature that was established in November 1993 and is considered the leading liberated trade mass in the whole world at the present day. Its monetary accomplishment is undeniable through countries which are in queue to develop into its members. Among all of the exclusive features of the EU, having a universal currency that is known as Euro is at the top and these days, it is used by 17 countries out of 27 members of the union. The popular countries which are not utilizing the Euro currency are UK, Sweden and Denmark. This is the EU which is well equipped with a common tariff that is applicable for every member state. In contrast, the members of NAFTA are separated in the fields of rules of social and economic issues. This is the major cause that a lot of obstacles are present in this system imposing a strong impact on individual and business level.With the enhancement of the trade activities all over the world, the making of the trade agreements and unions has become a common phenomenon as from the use of this method; a number of specific advantages can be obtained for the member countries. The most famous trade unions which are working on the face of this planet at the present day are known as the NAFTA and EU and here their differences are elaborated in detail.
What is NAFTA?
NAFTA stands for North American Free Trade Agreement which is among the generally prevailing and extensive agreements in the world of business. It was commenced on January 1, 1994 and directs every business in North American trades. NAFTA is an agreement amongst United States, Canada and Mexico which was premeditated to promote better dealings involving these states and the major objective was to eliminate trading barriers. Main purpose behind this was to enhance speculation amongst these countries that permitted for the elimination of duties between the member states which was acceptable for free and cheaper trade.
What is EU?
European Union (EU) is a political and economic union that was established in November 1993 and is considered the leading liberated trade mass in the whole world. Its monetary accomplishment is undeniable through countries which are in queue to develop into its members. Initially only 6 countries (including Netherlands, West Germany, Belgium, Luxembourg, Italy and France) were its members and now it has 27 associate states. EU has a universal currency that is known as Euro and used by 17 countries out of 27. UK, Sweden and Denmark are famous countries not using Euro. EU has a distinct marketplace having ordinary regulations that concern in all member countries.
- The major important difference is that EU has a common tariff which applies on all member states but members of NAFTA still separated in rules of social and economic issues and there are a lot of obstacles which have a strong impact on individuals as well as businesses
- EU People have a particular currency which is called Euro while in NAFTA the member states use their own currencies.
- EU is a separate opinionated body through European Parliament whereas NAFTA is presently a contract to promote trade amongst member countries.
- Numerous countries of EU have several clashes between them but members of NAFTA were not opponents with each other.
- EU has materialized as a business trading slab for the world and an amalgamation which commands world’s 20% GDP as NAFTA has no such influence as a trading block because its working is limited.