ECON 5705 NAFTA EU PAPER Brendan O’Neal

Its importance goes beyond the economies of the

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market access. Its importance goes beyond the economies of the involved counties, but also include political interests, foreign policy, and security. It appears that with the current rules of origin, there is restricted market access, making it difficult for the smaller nations to meet the criteria for their exports to be duty free, thus not being eligible for preferential trade. The EU may benefit from revisiting rules to make them simpler and less restrictive for companies and countries that qualify for a one step sort of rule to export certain products (Brenton and Manchin, 2002). Because it is a large bureaucracy the it is of the opinion of many critics that the EU is prone to fraud and faces many reform challenges in the coming years and decade. It is viewed as inefficient and insufficiently democratic by many critics (Osorio-Rodrigues, 2006). There are some apparent differences between NAFTA and the EU. NAFTA is strictly a trade agreement between the three countries that make up the North American continent. There are some labor and environmental agreements involved in NAFTA. All three countries have their own currencies, governments, rules, and there is no single political entity that governs NAFTA. The EU is a political and economic entity where the countries have consistent external tariffs; currently about 15 of the members use the Euro as their uniformed currency, the EU has a common goal of expansion and integration. The EU contains a parliament and executive branch that is lead by an executive court. The presidency of the EU is rotated throughout the heads of state of the
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member states. Despite the organization, the EU has deferred success in drafting a constitution. Unlike NAFTA, the EU allows for free movement of people, capital, and the EU negotiates as a single unit, as opposed to NAFTA’s unified interests but lack of operation as a single unit. The EU has unified funds in order to work towards the common goals of the nation states, conversely the countries of NAFTA work to assist Mexico, due to their impoverished social and economic state. There are many differences within NAFTA and the EU, some have been already touched upon. Other differences include agricultural differences, social and environmental standards, and levels of public participation. Both the EU and NAFTA differ from the MAI (Multi-lateral Agreement on Investment). It is designed to combine for the first time an international agreement on the three principles of investment rule making (1st SPOT World Trade, Multi-Nationals, MAI, NAFTA, GATT, WTO, APEC. n.d.).. These rules include investment protection, investment liberalization, and dispute settlement. The objective of the MAI includes to figuratively leveling the playing field for international investments. The MAI would preserve the right to establish an investment, such as buying land, natural resources, telecommunications, and services, under deregulated terms outlined in the treaty. Governments are given the obligation to ensure "effective enjoyment" of such investments that includes "protection from strife (Comparing NAFTA and the MAI, 2008)." In this paper, I have reviewed and example of a trade-agreement, a political
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