The European Union, TAFTA and NAFTA - Assignment Example

?The European Union, TAFTA and NAFTA The world is tending toward greater regional integration and cross border cooperation. This reality is evidencedby the establishment of regional trade blocks and international political alliances. These arrangements are formed with the objective of fostering free trade, reducing barriers to the free movement of people, services, and goods, and boosting social and political power. The European Union, TAFTA and NAFTA are some of the organizations formed with these objectives in mind. This paper explores the socio-political backgrounds of these organizations. The European Union (EU) is an organization that brings together a total of 28 member states. The union which includes among other countries the United Kingdom, Netherlands, Germany, Greece, Austria, Denmark, and Finland was established in the early 1950s (Bomberg, Peterson & Corbett 2012, p. 6). The six founding members of the union include West Germany, the Netherlands, Italy, Luxembourg, France, and Belgium. The union is basically an organization that brings together member states for political and economic reasons. The EU operates through intergovernmental negotiations and is governed by a number of supranational independent institutions (Bomberg, Peterson & Corbett 2012, p. 15). The main institutions that govern the union include the European Central Bank, the European Council, the European Commission, and the European Parliament, just to name a few (Corbett, Jacobs, Shackleton 2011, p. 7). The European Union traces its roots to the period following the Second World War when six countries sought to join forces with the aim of prevention the possibility of war between themselves (McCormick 2007, p. 64). Under the European Coal and Steel Community banner, the member states agreed to pool national heavy industries thereby eliminating potential conflicts relating to the scramble for raw materials (Bomberg, Peterson & Corbett 2012, p. 18). The member states signed a raft of treaties to extend their cooperation with one another over the course of time. In 1958, the signing of the Treaty of Rome led to the establishment of the European Economic Community (EEC) which created a customs union. A year later, the European Atomic Energy Community was formed with the signing of a treaty that was aimed at bringing member states to cooperate in the development of nuclear energy. In 1993, the European Union was formally established with the signing of the Maastricht Treaty. Ever since the establishment of the European Coal and Steel Community, the European Community has continued to expand in size and, therefore, power. The European Union has seen its member states cooperate in various ways (Smith 2007, p. 63). At least 12 of the countries have fully adopted the Euro as their national currency, a factor that has seen the easy flow of trade activities between the member countries. Other states use the Euro together with their national currencies to effect transactions. The Union demands that member countries fulfil a number of conditions before they can be formally admitted to the organization (Bomberg, Peterson & Corbett 2012, p. 45). By its demand that member countries and potential members be politically stable and have a democratic government that respects the rule of law and human rights, the union is effectively playing a major role in establishing deep rooted democracy in the region and beyond (Bindi 2010, p.45; Barnard 2007, p. 83). The European Union and the United States of America cooperate in a number of fronts. However, there are cases when the two powers engage in tussles which see them grace the corridors of the World Trade Centre to seek resolutions to their disputes. Considering the need for greater cooperation in terms of trade, the two bodies have been considering instituting a formal agreement that will see them enjoy free trade between themselves (Sutton 2013, par. 1). In this respect, the Transatlantic Free Trade Area (TAFTA), which is currently at a proposal stage, is intended to bring together the two largest economies in the globe. Both the E.U. and the U.S. hope to gain massively from TAFTA once it is formally established – a claim trashed by some experts (globalresearch.ca 2013, par. 5). The European Union, for example, hopes that the establishment of TAFTA will see the creation of hundreds of millions of new jobs for its citizens in addition to huge financial gains (Bollyky & Bradford 2013, par. 1). Given that TAFTA involves an agreement between the U.S. and the European Union, it will effectively impact on all the E.U. member states once it is instituted. While many spectators agree that greater cooperation between trade blocks is a step in the right direction, many critiques have cast a shadow of doubt over the manner the E.U. and U.S. have negotiated over the formation of TAFTA. Some politicians, for example, note that the negotiations have been conducted secretively and could lead to several negative effects (globalresearch.ca 2013, par. 3). In particular, some of the politicians note that by signing the TAFTA agreement, Europe will be opened up to a floodgate of genetically modified organisms, and shale gas. Furthermore, the union may be subject to the abuse of labour and digital rights. This is because the U.S. wants the European Union to lift its regulations on data privacy, food, and agriculture which are stricter compared to its own (those of the U.S.). Given the nature of changes that are bound to happen with the formal establishment of TAFTA, several multinational organizations including Toyota, Kraft, Unilever, IBM, and General Motors are bound to benefit massively from the proposed arrangement and therefore have cast their weight behind the negotiations (globalresearch.ca 2013, par. 1; Public Citizen 2013, par. 1). On the other hand, environmentalists, trade unions, digital rights activists, and consumer watchdogs among other parties, especially those based in Europe, are opposed to the deal. With respect to the establishment of TAFTA, the public in Europe feel that powerful corporations will have the power to challenge several regulations that they feel work to their disfavour (globalresearch.ca 2013, par. 2). They want their elected leaders to retain the powers to represent them and protect the interest of the public. TAFTA to them represents an organization that is out to curtail democracy through legal means. The U.S. on the other hand demands that any barrier to trade be removed – including controversial regulations such as those that protect data privacy, food, and agriculture. While it continues to negotiate over the establishment of TAFTA, the U.S. enjoys the cooperation of its closest neighbours through North American Free Trade Agreement. The North American Free Trade Agreement (NAFTA) is a trade agreement that came into force in 1994 (United States Trade Representative, 2013, par. 1; Weintraub 2004, p.15). The trade agreement brings together the United States of America, Mexico and Canada. The agreement was established with an aim of eliminating trade barriers between the member countries and to boost cooperation between them. As a direct result of the institution of NAFTA, the member countries immediately eliminated certain tariffs that would otherwise apply to the other member countries with respect to exports. The three countries allow businesses to trade freely between them with a few exceptions in so far as agricultural products are concerned. Such products as meat, corn and eggs among other agricultural products are not subject to tariffs under the NAFTA agreement. Since the establishment of NAFTA, trade between the three partners has soared (United States Trade Representative 2013, par. 3; Chambers, E. & Smith 2002, p. 42). Furthermore, foreign direct investments between the partners have also dramatically increased over the years following the signing of the NAFTA agreement by the member countries. Although NAFTA has been associated with a lot of good, some quarters have decried its effects. Some U.S. nationals perceive NAFTA as a great ill and mistake considering that it has left many people in the United States jobless (Cameron & Tomlin 2002, p. 47). While the citizens f the U.S. lose jobs due to strict regulations, their counterparts from Mexico gain a lot as they have unrestricted access to the country without having to abide by all the regulations that U.S. citizens and organizations are subject to. In conclusion, the E.U. NAFTA, and TAFTA are dedicated to eliminating barriers to trade between member countries or partners. Although the organizations are expected to bring closer cooperation between state partners, it is worth noting that not all players are bound to benefit from the arrangements. However, the cooperation of the states involved in the three organizations is expected to establish a massive trade black in addition to giving more power to the U.S. and the European Union. References Barnard, C. 2007, The Substantive Law of the EU: The four freedoms (2 ed.). Oxford University Press., Oxfordp. 447 Bindi, F. 2010, The Foreign Policy of the European Union: Assessing Europe's Role in the World, Brookings Institution Press, London. Bollyky T. & Bradford A. 2013, Getting to Yes on Transatlantic Trade Bomberg, E., Peterson, J. & Corbett, R. (eds) 2012, The European Union: How Does it Work? (3rd ed), Oxford University Press, London. Cameron, M. & Tomlin B. 2002, The making of NAFTA: how the deal was done. Cornell University Press. Chambers, E. & Smith, P. 2002, NAFTA in the new millennium. University of California, Center for U.S. Mexican Studies, San Diego. Consistent U.S.-EU Rules Could Remake Global Commerce, viewed 29 November, 2013 www.foreignaffairs.com/articles/139569/thomas-j-bollyky-and-anu-bradford/getting-to-yes-on-transatlantic-trade Corbett, R., Jacobs, F., Shackleton, M. 2011, The European Parliament (8th ed.), John Harper Publishing, London. globalresearch.ca 2013, The US-EU Transatlantic Free Trade Agreement (TAFTA): Big Business Corporate Power Grab, viewed 29 November, 2013 http://www.globalresearch.ca/the-us-eu-transatlantic-free-trade-agreement-tafta-big-business-corporate-power-grab/5352885 McCormick, J. 2007, The European Union: Politics and Policies, Westview Press, London. Public Citizen 2013, The Trans-Atlantic “Free Trade” Agreement (TAFTA), viewed 29 November, 2013 http://www.citizen.org/tafta Smith, C. 2007, International Trade and Globalisation, Anforme, Stocksfield. Sutton M. 2013 Transatlantic Civil Society Declaration: Leave Copyright and Patent Provisions Out of TAFTA, viewed 29 November, 2013 https://www.eff.org/deeplinks/2013/03/transatlantic-declaration-leave-copyright-patent-issues-out-tafta United States Trade Representative, 2013, North American Free Trade Agreement (NAFTA), viewed 29 November, 2013 http://www.ustr.gov/trade-agreements/free-trade-agreements/north-american-free-trade-agreement-nafta Weintraub, S. 2004, NAFTA's Impact on North America The First Decade, USA CSIS Press, Washington, DC. Read More