Introduction
Globalization has dragged several integration aspects into perspective. In line with the tenets of globalization, countries need to forge close co-operation with each other with a bid to ameliorating the existing relationship. One of the benefits of such close cooperation includes economic prosperity. As such, trade blocs and other integration-aimed organizations continue to emerge with the exact same goals- economic prosperity. Among the major or largest trade in the world today include the European Union (EU) and the North American Free Trade Agreement (NAFTA) whose comparison will be the subject of this discussion. This comparison, however, requires a prior extensive understanding of the reasons behind trade blocs other than adherence to the tenets of globalization. In this respect, trade blocs and their activities are not restricted to economic prosperity, but has certain political implications. Even so, the major reason is to advance the trade interests of the various regions within which the bloc operates. Besides, trade blocs assist in regional control concerning trade and politics with a cumulative effect of advancing a shared interest of the region. Other functions worth considering include establishment of tariffs that shields the region from external forces, promotion of regional political and security issues through trade, and technical cooperation within the bloc. While these functions seem completely desirable, some experts have expressed concerns against regionalism which they think may suppress free trade since trade blocs operates on principles of protectionism which often work against free trade. Regardless of the position, it is worth noting that trade blocs continue to be major components of economic globalization. At this point, their dominance seems inevitable as their functions expand from the realm of economics to other areas like politics. Following this line of thought, EU and NAFTA, despite their differences and similarities, continue to transform their regions and the world.
Overview of the EU and NAFTA
The European Union is both an economic and political union consisting of 28 member states majorly from Europe. It covers a geographical expanse of 4,475,757 km2 with an approximated population of more than 510 million people. Over the years, the institution has promoted an internal single market via a set of standardized policies and laws that are adopted by all member states and applies to them in equal measures. On the overall, these policies are developed with a view to ensuring unrestricted movement of capital, people, services and goods in the internal market. Also, the policies aim at standardizing trade policies and achieving a uniformity of economic and political doctrines, enacting legislation in both home affairs as well as justice affairs, and create a uniformity of policies in regional development, fisheries, and agriculture. In line with these aims, the European Union unveiled a monetary union in 1999 whose underlying motive was to facilitate the use of a common currency- the euro. The institution’s decision making system is a hybrid of inter-governmental and supranational frameworks, in the spirit of uniformity and equality. In total, there are seven primary bodies responsible for decision-making within the European Union framework. Commonly collectively referred to as the institutions of the European Union, these bodies include the European Parliament, the European Council, the European Central Bank, the Council of the European Union, the European Commission, the European Court of Auditors, and the Court of Justice of the European Union.