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1. EU AND NAFTA
Presented by:
Ashish Porwal

2. The European Union
THE EUROPEAN UNION

3. The European Union
What is the European Union?
• Shared values: liberty, democracy, respect
for human rights and fundamental freedoms,
and the rule of law.
• Largest economic body in the world.
• World’s most successful model for advancing
peace and democracy.
• A unique institution – Member States
voluntarily cede national sovereignty in many
areas to carry out common policies and
governance.
• Not a super-state to replace existing states,
nor just an organization for international
cooperation.
• World’s most open market for goods and
commodities from developing countries.
27
7
30
490
million
Member States
Combined
population of
EU Member
States
Percent of world’s
population
Percent of
global GDP
55
Percent of combined
worldwide Official
Development Assistance

4. The European Union
HISTORY OF EUROPEAN UNION:
• The European Union is set up in 1945 with the aim of ending the
frequent wars between neighbor's which culminated in the Second
World War.
• As of 1950, the European Coal and Steel Community begins to unite
European countries economically and politically in order to secure
lasting peace. Also in 1957, the Treaty of Rome creates the European
Economic Community (EEC), or ‘Common Market’.
• May 1968 , becomes famous for student riots in Paris, and many
changes in society and so-called ‘68 generation.
• Denmark, Ireland and the United Kingdom join the European Union on
1 January 1973, raising the number of member states to nine. In 1981,
Greece becomes the 10th member and Spain and Portugal follow EU
five years later.

5. The European Union
1951
Founding
Members
Belgium
France
Germany
Italy
Luxembourg
Netherlands

6. The European Union
1973
Denmark
Ireland
United Kingdom

7. The European Union
1981
Greece

8. The European Union
1986
Portugal
Spain

9. The European Union
2004
Cyprus
Czech Republic
Estonia
Hungary
Latvia
Lithuania
Malta
Poland
Slovakia
Slovenia
Austria
Finland
Sweden

10. The European Union
2007
Bulgaria
Romania

11. The European Union
EU Institutions
European Commission
• 27 Commissioners, representing the European
perspective, each responsible for a specific policy area.
• EU’s executive branch proposes legislation, manages
Union’s day-to-day business and budget, and enforces
rules.
• Negotiates trade agreements and manages Europe’s
multilateral development cooperation.
Council of the European Union
• EU’s main decision-making body, comprised of
ministers of 27 Member States, representing Member
State’s point of view.
• Decides on foreign policy issues.
• Council presidency rotates among Member States
every six months.
European Commission President
Herman Van Rompuy

12. The European Union
EU Institutions
European Parliament
• Voice of European citizens – members elected for
five-year terms.
• With the Council, passes EU laws and adopts EU
budgets.
• Approves EU Commissioners.
European Court of Justice
• Highest EU judicial authority.
• Ensures all EU laws are interpreted and applied
correctly and uniformly.
• Can act as an independent policy maker but unlike
the U.S. Supreme Court, the ECJ can only deal
with matters covered by the Treaties.
European Parliament in session

13. The European Union
European Central Bank
• The European Central Bank (ECB) is the
central bank for Europe's single currency,
the euro.
• The ECB’s main task is to maintain the
euro's purchasing power and thus price
stability in the euro area.
• The euro area comprises the 15 European
Union countries that have introduced the
euro since 1999.
• The ECB operates independently from
Member State governments.
The euro was introduced in 1999

14. The European Union
United in Diversity - The €uro

15. The European Union
The €uro
In 1999, the euro area was established as a
currency in eleven of the then fifteen EU
Member States.
Of the 27 EU Member States today, fifteen
have adopted the euro.
One of the striking benefits of a single
European currency are low interest rates due
to a high degree of price stability.
The euro is as stable and credible as the best-
performing currencies previously used in the
euro area countries.
€
€
€
€

16. The European Union
1951:
• In the aftermath of World War II, the aim was to
secure peace among Europe’s victorious and
vanquished nations and bring them together as
equals, cooperating within shared institutions.
• Based on a plan by French Foreign Minister
Robert Schuman.
• Six founding countries – Belgium, the Federal
Republic of Germany, France, Italy, Luxembourg
and the Netherlands – signed a treaty to run heavy
industries (coal and steel) under common
management.
European Coal and
Steel Community
Jean Monnet and other leaders with
the first “European” ingot of steel

17. The European Union
Treaty of Rome
• The six founding countries
expanded cooperation to other
economic sectors, creating the
European Economic Community
(EEC) – or “common market.”
• As a result, people, goods,
services, and capital today
move freely across the Union.
1957:
Signing of the Treaty of Rome

18. The European Union
The EU is a global player.
Its soft power promotes
stability, prosperity,
democracy and human
rights, delivers concrete
results in the fight to
eradicate poverty, and in
achieving sustainable
development.UN Secretary General Ban Ki-moon, High Representative
for the Common Foreign and Security Policy Javier Solana,
and EU Commissioner Benita Ferrero-Waldner
The EU in the World

19. The European Union
Addressing Global Challenges
• Peace & Security
– Works for global peace and security alongside the
United States and multilateral organizations –
including NATO and the United Nations.
– Undertakes humanitarian and peacekeeping
missions and has provided military forces for crisis
management around the globe.
• Counterterrorism & Homeland Security
– Taken steps to improve intelligence sharing,
enhance law enforcement and judicial cooperation,
curtail terrorist financing.
– Boosts trade and transport security to support the
struggle against terrorism.

20. The European Union
• Democracy & Human Rights
– Works globally for free elections and open
democratic processes.
– Fights racism and intolerance at home and
abroad.
– Campaigns globally against capital punishment.
• Development Assistance & Humanitarian
Relief
– The EU and its Member States are the world’s
largest aid donor, providing 55% of total official
development assistance.
– Provides billions of dollars in humanitarian aid
to more than 100 countries in response to
crises and natural disasters.
Addressing Global Challenges

21. The European Union
• Trade
– European Commission represents all 27 EU
Member States before the World Trade
Organization.
– Supports free trade and open markets, within
the rules-based structure of the WTO, to
promote growth and jobs in both industrialized
and developing countries.
– The world's most open market for products and
commodities from developing countries – 40%
of all EU imports are from developing countries.
Addressing Global Challenges

22. The European Union
• Environmental Protection
– A leader in global efforts to protect the
environment, maintaining rigorous and
comprehensive systems at home.
– Plays a key role in developing and
implementing international agreements,
such as the Kyoto Protocol on Climate
Change.
– Executing a “cap and trade” system to
reduce greenhouse gas emissions
– Takes the lead in the fight against global
warming with the adoption of binding
energy targets (cutting 20% of the EU’s
greenhouse gas emissions by 2020).
Addressing Global Challenges
Source: German Information Center USA

23. The European Union
Partners in Global Leadership
• EU and U.S. work together to develop
international standards:
– Fighting terrorism and transnational crime
– Advancing global trade liberalization
– Combating piracy and intellectual property
violations
– Spreading benefits of globalization
• EU and its Member States are helping restore
peace and stability in Afghanistan.
• EU and U.S. work together in the Middle East
Quartet to advance the peace process.
• When the EU and U.S. agree, others tend to
follow.
EU Commissioner Benita Ferrero-
Waldner & U.S. Secretary of State
Condoleezza Rice

24. The European Union
Shared Values and Responsibilities
• Freedom & Democracy
Support free elections, good governance, human rights,
and the rule of law around the world.
• Security
Cooperate to fight terrorism, limit the spread of nuclear
weapons, and work for global peace.
• Development
Together, EU and U.S. provide 80% of global
development assistance and an even larger share of
global humanitarian aid in times of disaster and
conflict.

25. The European Union
A Dynamic
Transatlantic Economy
• EU and U.S. together account for 40% of total
global trade (more than $1.5 billion in
transatlantic trade every day).
• The $3 trillion EU-U.S. transatlantic economy
employs 14 million workers on both sides of the
Atlantic.
• In 2005, Europe accounted for roughly two-
thirds of total global investment flows into the
U.S. – by far the most significant source of
foreign investment in the U.S. economy.

26. The European Union
• European companies are the leading
foreign investors in the U.S.
– The UK, Germany, France, and the
Netherlands – top four sources of
jobs created by foreign investment
in the United States.
• American companies invest far more in
EU countries than in Asia.
– U.S. businesses make 5 times the
profit in the Netherlands - alone -
as they make in China.
– In 2005, EU investments in Texas
alone surpassed all U.S.
investments in China and Japan,
combined.
BMW’s assembly plant is South Carolina’s
largest private sector employer.

27. The European Union
Future of Transatlantic Relations
• EU and U.S. face common challenges that are global in
origin and impact. With global challenges, come global
responsibilities.
• EU and U.S., with our shared values and common
interests, are natural partners to give a lead in four
key areas:
– Promote peace, human rights and democracy
worldwide.
– Confront global challenges, including security and
non-proliferation.
– Foster prosperity and opportunity.
– Advance strategic cooperation on energy security,
climate change and sustainable development.

28. The European Union
“Since no single nation can efficiently
and effectively deal with global
challenges such as climate change,
counterterrorism, non-proliferation,
pandemics and natural disasters on its
own, we commit ourselves to
strengthening our cooperation to
address these challenges.”
EU-U.S. Summit Declaration
Vienna, July 2006

29. The European Union
Education & Research
• EU and U.S. cooperate on science and
technology education through:
– Exchange programs
– More than 700 institutional
partnerships
– Vocational training
– Scholarship programs
– R&D cooperatives
• EU and U.S. provide joint or dual
higher educational degree programs.
• EU funds Centers of Excellence at
leading U.S. universities.
EU supports R&D to
increase Europe’s
growth and global
competitiveness.

30. NAFTA

31. HISTORY OF NAFTA
• NAFTA (NORTH AMERICAN FREE TRADE AGREEMENT) is an
agreement signed by the governments of the United states,
Canada and Mexico creating a trilateral trade bloc in North
America.
• Members: Canada, Mexico & United States
• Official languages: English, French and Spanish
• Secretariats: Mexico city, Ottawa, Washington D.C.
• Establishment: 1 January 1994
• GDP of NAFTA alliance: USD 12 trillion
• NAFTA supplements: NAAEC & NAALC

32. BACKGROUND
In 1988 Canada & the United States signed the Canada-United states Free Trade Agreement
The American government then entered into negotiations with the Mexican government for a
similar treaty
Canada asked to join the negotiations in order to preserve its perceived gains under the 1988
deal
The agreement NAFTA was signed by
• U.S. president - George H. W. Bush,
• Canadian prime minister - Brian Mulroney
• Mexican president - Carlos Salinas in San Antanio, Texas on December 17,1992.

33. AMENDMENT
• Final provisions (NAFTA) were fully implemented on January 1, 2008.
•NAFTA one of the most successful trade agreements in history and has
contributed to significant increases in agricultural trade and investment.
•Most comprehensive Regional Trade Agreement signed by the United
States.

34. TRADE AND INVESTMENT EFFECTS :
•TRADE AND INVESTMENT EFFECTS NAFTA is a broad agreement. From
1994 to 2008, U.S. exports to Mexico rose 91%, compared to 41% to the
world. U.S. imports increased by 179%, compared to 89% from the
world.
•After fourteen years, most tariffs have gone to zero, except for some
very sensitive (mostly agricultural) goods that have limited protection for
up to 15 years

35. TRADE WITHIN THE GROUP
Provides job opportunities :
•Employment in Canada grew by 11 percent, generating 1.8 million new
jobs.
•Employment in Mexico grew by 22 percent, generating 2.2 million new
jobs.
•Employment in the United States grew by more than 16.3 percent,
generating 18.1 million new jobs.
WORKS FOR SMALL AND MEDIUM SIZED BUSINESS:
•97 percent of Canadian, 96 percent of U.S. and 95 percent of Mexican
exporters are small and medium sized businesses.

36. NAFTA's partners created an independent and effective rules-based
system in order to avoid disputes within the group
Main production within the group is of Electronic, Automotive and
Textile industries

37. NAFTA IN PERSPECTIVE
• U.S. two-way trade with Canada and Mexico exceeds U.S. trade with
the European Union and Japan combined.
• In fact, US trades more with Maxico in a month than trade with other
countries in a year. US exports more to Mexico in a day than with
Paraguay in a year.
• US exports more in a week with Canada than with Central America in a
year.

38. • BENEFITS :
• NAFTA eliminates trade barriers.
• Benefits the importers by reduced or duty free goods.
• No MPF from Canada for NAFTA goods. Can make the exporter more
competitive then other non-participating countries.
• 200% increase in trade among the 3 countries.
• Increase market access within each country.

39. LIMITATONS
• It has negative impacts on farmers in Mexico who saw food prices fall
based on cheap imports from U.S. agribusiness.
• It has negative impacts on U.S. workers in manufacturing and
assembly industries who lost their jobs. Critics also argue that NAFTA
has contributed to the rising levels of inequality in both the U.S. and
Mexico.
• Some economists believe that NAFTA has not been enough (or worked
fast enough) to produce an economic convergence, nor to substantially
reduce poverty rates.

40. NAFTA COMPLIANCE TEAM
• NAFTA COMPLIANCE TEAM THREE Persons TEAM DEDICATED TO
RESOLVING NAFTA MARKET ACCESS AND COMPLIANCE CASES.
• TEAM LEADER, MEXICO AND CANADA DESK OFFICERS
• THE TEAM COMBINES EXPERIENCE IN UNDERSTANDING NAFTA
REGULATIONS WITH SPECIFIC COUNTRY EXPERTISE.
• TRY TO RESOLVE PROBLEMS BY PERSUADING FOREIGN COUNTRY TO
COME INTO COMPLIANCE VOLUNTARILY, AVOIDING TIME AND EFFORT
INVOLVED IN FORMAL DISPUTE SETTLEMENT

41. PUBLIC OPINION
 PUBLIC OPINION Public opinion towards NAFTA in the United States,
Canada, and Mexico is mixed. A survey conducted by CIDE and
COMEXI in Mexico showed that 64 percent of the Mexican public
favored NAFTA.
 The Program on International Policy Attitudes reported in a poll that 47
percent of Americans thought that NAFTA has been good for the United
States, while 39 percent thought it had been bad for the country

42. Impact on Jobs
• The studies indicate that the reduction in net exports to Mexico has eliminated
227,663 U.S. job opportunities since 1993, and the reduction in net exports to
Canada has eliminated 167,172 job opportunities in the same period. In total,
NAFTA resulted in a net loss of 394,835 jobs in its first three years.
• The analysis has found that NAFTA has eliminated significant numbers of jobs
for women and members of minority groups, as well as white males. Between
1993 and 1996, women lost 141,454 jobs to NAFTA, blacks lost 36,890 jobs,
and Hispanics lost 22,520 jobs, numbers closely reflecting these groups' shares
in manufacturing industries

43. RECENT NAFTA NEWS NAFTA
• NAFTA Toll Highway Destroying Prime Agricultural Land
The Trans-Texas Corridor (TTC) is no ordinary highway. The toll road
would be four football fields wide. It includes separate lanes (up to six
for automobiles, four for large trucks), plus tracks for freight trains,
separate tracks for high-speed and commuter rail, also space for oil
and gas pipelines, electricity wires, and broadband transmission cables.
The implications of this scheme are staggering. Some experts say that
up to a million people in Texas stand to lose their homes and 584,000
acres of rich farm and ranchland are to be destroyed, all for a privately
funded highway

44. CONCLUSION
NAFTA is one of the most successful treaties of the times in terms of
growth in trade i.e. imports & exports , G.D.P etc. but on the other hand it
is also responsible for causalities like loss of jobs, migration, rising level
of inequality and many others. Thus it is important that the treaty should
be carried forward concerning about taking steps for the problems
originated due to NAFTA ,otherwise it will create inequality in many
terms which can lead to bad conditions in future for all the three
countries.