What is the difference between NAFTA and EU?

The North American Free Trade Agreement, known as NAFTA, is a trade and investment arrangement between the US, Mexico, and Canada. This agreement eliminated many trade barriers between the three countries. NAFTA expired in 2009 and has since been replaced by the current administration.

The EU, known as the European Union, is also an agreement among 27 states located predominantly in Europe that has policies to ensure free movement of people, goods and services, and capital within their market. The EU has one type of money instead of individual currencies for each country, which is the Euro.

Certain countries have agreements with one another, which it comes to trading goods and services NAFTA and EU are two of those many agreements. NAFTA is a bilateral agreement. It is between Mexico, Canada, and the United States. The NAFTA agreement started in 1994.

It was changed in the last few years, but its purpose in reducing trade among other countries has remained the same. EU is a much more complex agreement. It is complex in part because it is between 28 European countries.

It started as a union about trade but moved into a political union. NAFTA solely focuses on economics, while the EU focuses on economic, social, and territorial aspects.

Bilateral and multilateral trade concord has an ability to facilitate and promoting trade between a group of countries; thereby, it reduces the likeliness of war or conflict. NAFTA is basically a bilateral agreement between Canada, the United States of America, and Mexico. It came into function in the year 1994. Though it was altered recently, it has the aim of reducing trade barriers among its member countries so as to promote the emergence of the economic bloc.

EU, in contrast, is a complex and very unique economic union existing among 28 European countries. It was initially created so as to facilitate trade between a limited number of states, but it later became a political union. All member states spend the same currency also, goods, people move freely within the EU borders. NAFTA and EU are distinct in terms of reach, scope, and implementation, as NAFTA is a purely economic agreement, EU, has grown into a territorial, social, and economic union.