Unit 4 → Subtopic 4.2
How are NAFTA, EU & ASEAN Different?
International trade agreements shape the way countries interact economically, reducing barriers to trade and increasing economic cooperation. Three of the most significant trade blocs in the world are NAFTA (North American Free Trade Agreement), the EU (European Union), and ASEAN (Association of Southeast Asian Nations). While all three organizations aim to facilitate trade and economic growth, they differ in terms of structure, policies, economic goals, and levels of integration. This project challenges students to compare NAFTA (now replaced by the USMCA), the EU, and ASEAN, analyzing their key differences and how they impact global trade.
Students will begin by researching the formation, purpose, and member countries of each trade bloc. They should examine how NAFTA (USMCA), the EU, and ASEAN influence trade policies, tariffs, and economic cooperation among member nations. They should also investigate how these organizations have evolved over time and adapted to economic and political changes.
A key focus of this project is understanding the differences in trade integration levels. The EU is a deeply integrated economic and political union, with a shared currency (the euro for some members) and common regulations. In contrast, NAFTA/USMCA is a regional free trade agreement that primarily reduces tariffs and trade restrictions between Canada, the U.S., and Mexico. ASEAN, meanwhile, is a regional economic bloc in Asia that promotes cooperation and economic growth but maintains significant national sovereignty for its members.
Another major component of this project is examining how these trade agreements have impacted economic growth, employment, and business opportunities. Students should analyze whether these organizations have benefited member nations through economic expansion or if they have created trade imbalances that favor certain countries over others. They should also explore how trade disputes, Brexit, and the renegotiation of NAFTA into the USMCA have influenced these agreements.
The final report should compare the structure, policies, and economic effects of NAFTA (USMCA), the EU, and ASEAN, assessing which trade bloc has been most successful in facilitating trade and economic growth. The goal of this project is to help students understand the role of trade agreements in shaping global commerce and economic diplomacy.
Recommended Procedure:
Research the Purpose and Structure of NAFTA, EU, and ASEAN – Study how each trade bloc was established, their objectives, and how they facilitate economic cooperation among member countries.
Compare the Economic Policies and Trade Rules of Each Bloc – Analyze how regulations on tariffs, free trade, labor mobility, and business operations differ across these regional agreements.
Examine the Economic and Political Impacts of Each Bloc – Investigate how NAFTA (now USMCA) shaped North American trade, how the EU integrates economies with a shared currency, and how ASEAN fosters economic growth in Southeast Asia.
Evaluate the Strengths and Weaknesses of These Trade Agreements – Assess the benefits of trade liberalization, economic stability, and political unity while considering issues such as regulatory challenges and sovereignty concerns.
Write a Comparative Analysis of NAFTA, EU, and ASEAN – Discuss which trade bloc has had the most significant economic impact and how different economic models influence regional trade success.
Suggested Sources:
Understanding the Role of Regional Trade Blocs:
Investopedia: What Are NAFTA, EU, and ASEAN? – https://www.investopedia.com
Khan Academy: How Regional Trade Agreements Shape Global Trade – https://www.khanacademy.org
2. Case Studies on the Impact of NAFTA, EU, and ASEAN:
The Balance: The Economic Success and Failures of Trade Blocs – https://www.thebalancemoney.com
Harvard Business Review: Comparing the Economic Growth of NAFTA, EU, and ASEAN – https://hbr.org
3. Economic and Political Challenges of Regional Agreements:
World Bank: The Effectiveness of Trade Blocs in Promoting Economic Growth – https://www.worldbank.org
OECD: How Trade Agreements Affect Global and Regional Economies – https://www.oecd.org
4. The Future of Trade Blocs and Economic Integration:
IMF: The Evolution of Regional Trade Agreements – https://www.imf.org
United Nations: The Role of Regional Trade Agreements in Globalization – https://www.un.org
Grading Rubric:
Total Points: __ /20
