The size of the European Union market is exponentially larger than it was in the 1950's, when European integration was first proposed. While today the European Union is the only region with the economic might to challenge the United States for meaningful influence over international trade policies, the United States is noncommittal on E.U. proposals calling for the alignment of labor regulations, the opening of consumer forums and the offer of an audience to environmental groups. As the constituencies calling for these developments have been relegated to peripheral positions in the dialogue over trans-Atlantic economic unification, those with an interest in these groups see a trend towards liberalizing the rules for corporate advantage in the economic co-ordination that has sprung up between the United States and Europe. Much of the current communication between the United States and the European Union is focused on establishing an agreement that codifies the rules of trans-Atlantic trade and that acknowledges the extent of trade conducted between the US and Europe, greater in bulk than between any other pair of regions in the world, without disregarding the efforts European producers must make to satisfy interest groups and regulations.

The heated dialogue between the United States and the European Union on this issue has come hard on the heels of the joining of the US, Mexico and Canada in the North American Free Trade Agreement: NAFTA. This agreement seeks to standardize industrial and labor regulations between the United States and its neighbors so that tariffs can be reduced, international transport encouraged, and corporate investment diversified. While bringing standards of production into alignment is a goal that ought to raise the quality of production and the level of cooperation across the continent, it also creates an opportunity to establish a standard contra to European expectations of international regulation. As a solution, the E.U. has proposed TAFTA, the Trans-Atlantic Free Trade Agreement, but the United States has repeatedly hesitated at the proposal, seeking to protect its dominance in the Western Hemisphere. This dominance is secured by its ability to protect its factories and corporations from sources of comparable European production and demanding practices of review and concessions popular in Europe as a nod to social consensus.

These issues have resulted in the plethora of interest groups with a voice in the matter simultaneously accusing the U.S of brinkmanship, protectionism, callous deregulation, third world exploitation and anti-competitive practices. The route to economic expansion is a prominent issue in both the US and the European Union, and some with a say in the matter repeat these protests as a screen for their own plans to tip the balance of economic advantage towards their own region at the expense of all other involved parties in the process of exploring for parity.

The intent of the author in noting the size of the European Union in the first sentence of the passage is to

(A) demonstrate the difference between the past E.U. and the present E.U.
(B) clarify the number of parties in trans-Atlantic trade
(C) establish the importance of one of the leading parties in world markets
(D) show that the E.U. cannot be exploited for US self-interest
(E) demonstrate why the United States is non-committal about cooperation



Which of the following words best substitutes for the term 'heated dialogue' ?

(A) impasse
(B) dispute
(C) shuttle diplomacy
(D) brinkmanship
(E) banter



The main concern of the European Union regarding NAFTA is that

(A) North America will have a higher standard of living than Europe
(B) North America will improve its standard of living at the expense of Europe
(C) North America will adopt production standards that are incompatible with Europe's
(D) North America will flood Europe with cheap, low quality goods
(E) North America will promote the exploitation of labor



It can be inferred from the passage that less stringent production and environmental standards than those of North America are unfavorable to the European Union because

(A) they unfairly lower the quality of life in Europe
(B) they reduce the amount of cheap labor entering Europe from the third world
(C) they damage the European environment
(D) they encourage European workers to move to the United States
(E) they make it easy for already dominant North American industries to do trade



Select a sentence in the passage that accuses the US of deregulation driven by an uncaring attitude.





The non-committal attitude of the United States to pursue trade relations with Europe Union is demonstrated by which of the following?

Indicate all that apply.

A The US, unwillingness to engage in any new agreements
B The US, seeking keen interest in NAFTA
C The US, decision not to turn down TAFTA while avoiding any commitment to it