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North American Union? The North American Union is still just a concept that is elusive to many people in the country. CNN reported on February 5th, 2007 that the North American Union is not a good idea and the American people are unaware. However, CNN did not report that the North American Union is only a concept that hasn’t yet been realized, isn’t well known, and is likely to be beneficial to the country. The North American Union (NAU) became raised in the conscious of the public when Judicial Watch released documents through a Freedom of Information Act that included notes from a Forum between the U.S., Canada and Mexico. The discussion revolved around collaborating energy supply, immigration reform, and easing the income gap between the three countries. Following North American Free Trade Agreement (NAFTA) and the Security and Prosperity Partnership of North America (SPP) a call for a North American Union appears to be logical. The aligning of economies appears to be a counter to the development and successes achieved by the formation of the European Union. Advantages of a North American Union: 1.) Exports: China currently has a WTO complaint against their protectionism, the European Union has strict rules about imports and Japan is blasting American auto manufacturers with their lower priced cars creating great hardships for U.S. manufacturers. Each of these countries desire unhindered access to American markets while protecting their own. By joining with Canada and Mexico the U.S. will be better be able to protect its markets from foreign competition, export to its neighbors, and tap into the resources of its neighbors. 2.) Lower Labor Costs: Let us face the facts that many American workers are paid top-rate for minimal quality work. Our education system is sub standard and unions have lowered competitiveness. Even though our workers are typically more productive (due to technological advances) than many other countries our labor costs are astronomical. China and India have an unfair advantage because their labor is cheap and they are able to make cheap products. A North American Union will give the U.S. more access to cheaper labor. 3.) Cheaper Energy: The U.S., Mexico, and Canada have great resources in terms of oil, coal, wood, Iron, and other natural resources. Building a block of countries that collaborate in terms of oil reserves, mining, and developing alternative energy sources helps the U.S. to survive in a market where oil prices are likely to become more expensive due to demand & supply. 4.) Protection of Borders: Since the mess in Iraq and around the world is now becoming realized terrorism is likely to become a major form of warfare against the U.S. By collaborating in terms of border protection the U.S. is likely to gain more advantage from terrorism and conventional warfare. Most business leaders are aware of some of the negative impacts of a NAU but see the benefits as far superior. Officials are also aware that the U.S. is moving closer to economic hardship as globalization takes effect, baby boomers retire, younger people cannot afford education, families become poorer, companies move overseas, and global warming begins to damage industry. The NAU is an attempt to thwart impeding hardships and build a block of economic strength within the continent. Murad Ali is a three-time business author, a Ph.D. candidate and a human resource manager. http://www.thenewbusinessworld.blogspot.com
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North American Union, Economics, economy, business, Trade,
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