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North American Union | Economics Blog

North American Union


Readers Question: Is there any possibility for North America to form an international union like EU? Thanks.

There is NAFTA – a free trade association between the big 3 North American countries – Canada, US, and Mexico.

However, this free trade association is very different to the degree of economic and policial union we find in the European Union.

The European Union includes:

  • Free Movement of labour and capital – hard to see US allowing free movement of people from Mexico or Canada to live and work in the US
  • Common Regulation on environmental and industrial standards
  • Acceptance of educational qualifications in member countries
  • Regional aid towards poorest areas
  • Common Agricultural policy, including common external tariff
  • 16 countries of the European Union have joined the Euro – a single currency with common monetary policy
  • In the European Union, many decisions are taking with QMV, which means individual countries can be outvoted.

 

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