The Eu, Nafta And The Wto

1489 Words Mar 15th, 2016 6 Pages
Many countries have organised themselves into groups that have worked to in various ways to protect and enhance their domestic economies, their social status and level of development. Examples include the G8, the EU, NAFTA and the WTO.

The introduction of a social and economic grouping is often to create a single market, such as was the case with the EU and NAFTA. The European Union is an economic and political union of 27 member states which are located in Europe – its roots are with the EEC which was formed in 1957. The European Union was fully established when the Maastricht Treaty came into force on 1st November 1993. The original objective of the EU was to create such single market, so that there was the free circulation of goods, capital, people and services within it. The integration of the economies was largely thanks to the introduction of the Euro in 1999. It helps to build a single market by easing trade and travel by eliminating issues of exchange rate. The single market is eased in to existence by the creation of a customs union with a common external tariff on all goods entering the market. The free trade that takes place within this bloc can often increase competition creating more businesses and reasonable prices, or they can offer subsidies to assist in the development of a particular sector, such as in the Common Agricultural Policy. NAFTA is a further example that is solely a trading bloc, between Canada, the USA and Mexico. Trade between NAFTAS members…

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