etween NAFTA and the EU is related to merger. The new and old members in the EU have reduced drastically. The distance between Mexico, US and Canada could exist.
Source: Anderson, Cavanaugh (2004).
NAFTA can’t be changed to reflect the EU. The EU was formed as the nations did not dominate. This option is neither feasible nor viable for NAFTA, as there is a fear of losing their control. NAFTA has to move forward. If it does not, it may lose its dominance as the world’s top economic power.
NAFTA and the EU represent more than half of the world’s output. Both trading blocs disapprove one another for protecting their own market, following partial trade practices and more importantly their attempting to shut down one another’s markets.
The EU will continue to expand their market. NAFTA has to defend itself. NAFTA could protect itself by expanding to the South and by making the intra-NAFTA economy stronger. Both options are not reasonable in the short term.
The largest trading block is NAFTA, as the economies and markets of US are relatively huge in comparison. At one point of time NAFTA has to enter into some kind of conflict with the EU. It is not necessary that this rivalry or confrontation has to be violent and harmful. Both NAFTA and EU would lose a lot, if they go against one another. Both NAFTA and the EU have to overcome obstacles to peacefully coexist. In many areas specific interests of both the NAFTA and the EU collide.
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