The EUROPEAN UNION

The first big steps to economic cooperation in Europe began in 1958 the European Economic Community was formed.

Expansion of the European Union has continued for nearly 50 years.

Germany ItalyNetherlands

Belgium Luxembourg

France

The goal of the European Union is to break down trade barriers and eliminate tariffs between member countries.

                                    

     

Ten new members join the EU on May 1 (swissinfo)

NEW MEMBERS AS OF

2004.

The original twelve countries are in green.

19951995

2005

95

Three were added in 1995

10 new countries were invited in 2005.

No single European economy can approach that of the USA.

But, add them together as the EU and we are nearly the same.

In 1993 a common currency was proposed. The Maastricht Treaty opened the way for the EURO, a currency used in 12 countries of the European Union.

Three countries chose not to adopt the Euro. They were the United Kingdom (the “pound”, seen below), Sweden and Denmark.

APHG only

The EU is an example of “supra-nationalism.”

…composed of three or more states that form an administrative structure for mutual benefit and pursuit of shared interests…

Most of the plants are within 5o miles of the USA border.

Low labor rates benefit American countries and add low paying jobs to Northern Mexico.

What is NAFTA?It is a “free trade” zone that stretches from Alaska to the Yucatan Peninsula. This has ended most tariffs on imported goods.

A tariff is a tax added to the cost of a product that is being sent into (an occasionally out of) a country.

Opponents of NAFTA argue that the agreement is a threat to farmers on both sides of the border.

Cheaper Mexican farm products could ruin American farmers while technology driven crops like wheat could put Mexican farmers out of business.

Opponents argue that NAFTA will shift more American jobs to Mexico.

NAFTA was opposed by labor unions, many farmers, factory workers, environmentalists and the like but was supported by business and politicians in both parties.

Remember, the higher the number of people involved in agriculture, the lower the development level.