Answer to Question 1
NAFTA is a FTA with a limited institutional framework that settles trade disputes between members, and oversees the provisions of side agreements involving labor and the environment. There are no stated long term goals to further integrate any of the three economies. Indeed, it would take a major change of attitudes in both Canada and Mexico to convince either country to pursue further economic integration, especially with the United States. The one long term goal often expressed by the NAFTA countries is to expand the agreement to bring in other countries from the Western Hemisphere such as Chile. The EU is a customs union that hopes ultimately to transform itself into a full economic union with a single currency. The EU has an extensive governmental structure with a parliament, an executive branch and a judiciary.
Answer to Question 2
D