The political force has shifted from the painstaking and time-consuming technique of multilateral tariff negotiations to smaller regional and bilateral arrangements: the Regional Trade Agreement. In these agreements; members grant preferential treatment, essentially agreeing to liberalize trade in goods and services between themselves while taking into account certain trade barriers. However, the RTA is not the direct path to trade liberalization. Initially, when multilateral trade discussions took place, bilateral and multi-party free trade agreements filled the void. Previously there were restrictions resulting from strict and premeditated trade agreements, so many states are now moving towards freer trade for their own benefit. Regional Free Trade AgreementThis type of agreement not only eliminates barriers to trade but also promotes foreign investment, leaving no room for economies that use import tariffs to safeguard their growing industries or their farmers from the abundance of imports at low cost. This trade agreement also contains additional investment guidelines that pose a possible threat to poor citizens' access to public services. consumption shifts from a high-cost producer to a low-cost one. For example: France is one of the most efficient wine producers. After the signing of the free trade agreement it now becomes possible to import wine from France without paying tariffs or duties. This ultimately results in efficiency gains for UK shoppers. Trade Diversion Trade diversion occurs when the consumption pattern changes from a low-priced producer outside the... center of the paper ...... and the United States and Canada are high and were not considered at the time of conclusion of the agreement. This is why many American citizens believe that their country has numerous illegal settlers, trade deficits instead of excessive benefits, and the loss of hundreds of thousands of jobs, as before. The relationships within this block are complex and close; Canada and Mexico are controlled by the United States, which rejects their commercial freedom. All this does not create a solid foundation for business and trade. Conclusion: The purpose of trading blocs is well defined: they are made to increase the wealth and standard of living of citizens of member countries and to ensure goods and services are available without problems. NAFTA and EU are both one of the most powerful alliances in the world, but NAFTA will never be able to compete with EU, the main reason is the lack of antiquity, location and developed countries.