Reviewed by Sep 28, 2020| Updated on
What is a Supranational Entity?
A supranational entity is an international group or alliance in which member states' power and influence transcend national boundaries or interests to engage in decision-making and to vote on collective body matters. The two supranational bodies are the European Union and the World Trade Organization.
Each member in the EU votes on policies which will impact each member nation. The benefits of this development are the synergies resulting from social and economic policies, and a stronger international presence.
The EU was created in the 1940s in response to World Word II to help prevent the neighbouring countries from warring in the future.
How Does the Supranational Structure Work?
An entity must work in multiple countries to become supranational. Although applicable to multinational corporations, the term is used more commonly in the sense of government entities since they often have regulatory obligations within their daily operations. Such roles might include developing international treaties and international trade standards.
Although a supranational body may be heavily involved in setting market standards and regulations, it does not automatically have regulatory power, which remains with participating companies at the individual governments.
While most supranational organisations focus on promoting trade among member nations, the organisation may also have political implications or demands.
It may require, for example, that all member nations take part in certain political activities, such as public leadership elections. While supranational organisations have to work in multiple countries, they generally have no capacity to implement them.
In addition to basic trade, other activities are designed to promote international standards that include supranational organisations. This may include food production operations, such as agriculture and fisheries, and those related to the environment or energy production.
It may also include supranational organisations in education and forms of foreign aid or assistance to countries. Many organisations, including weapons, appropriate treatment of prisoners of war, nuclear power, and other nuclear development technologies, are active in areas of significant political effect on member nations.