I have heard of it before, the problem is that the EU is made up of countries on relatively equal footing; where as North America isn't. Most people believe a North American union would actually hurt more than it would help, a deviation that was considered was just Canada and the U.S. and leave Mexico out; but there are still many problems with that as well. For instance, the U.S. constitution is strict when it comes to economic or military alliances. And then Canada has basically blistered the U.S. about their environment vs. economy stance; a union would make them look like hypocrites.
From the perspective of a U.S. citizen, the U.S. is making huge concessions and it would hurt from an economic perspective, uniting with one nation that has a semi-weak economy in Canada, and another that has a history of inflation, poverty, and unemployment in Mexico. The idea is nice, but in practice it wouldn't be so great; although eventually 1 world currency should be the goal.
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