The European Union and NAFTA Assignment Example | Topics and Well Written Essays - 1250 words

The European Union and NAFTA - Assignment Example 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 the mselves (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). ... 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