In general, harmonization means “to bring into common accord or agreement.” In business, particularly international business, harmonization of laws, agreements, definitions, and specifications is an important consideration. Having common rules and specifications reduces uncertainty and reduces the problems businesspeople face when entering markets. Harmonization of rules and specifications increases both efficiency for business and market fairness, with each participant operating under the same standards. Business literature includes many harmonization issues. For example, European and U.S. accounting systems still differ, adding to the difficulty in interpreting figures from one company to another. With the NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA), the United States, Canada, and Mexico agreed to the North American Industry Classification System (NAICS), defining products by the same classification system. NAICS is used in the HARMONIZED TARIFF SYSTEM (HTS), by which goods that are transformed from one product category to another are then subject to a different TARIFF classification. As part of the WORLD TRADE ORGANIZATION, the United States agreed to harmonize its PATENT system with that of the EUROPEAN UNION (EU). Similarly, the EU harmonized taxation on interest INCOME in order to reduce the impetus for tax evasion. (A company or individual with interest income from several EU countries would rationally try to declare that income in the country with the lowest tax rate.) The United Nations has helped to harmonize labeling and classification of products as a way to reduce miscommunication and misunderstanding of materials and chemicals. For example, in recent years the United States and the European Union have debated what criteria to use in defining organic foods. The International Standards Organization attempts to harmonize technical standards among global manufacturers, in the process increasing the substitutability of one firm’s products for another, increasing market competition and reducing the need to produce different components and parts for each manufacturer. Harmonization is a controversial issue in international business. Each company or country favors harmonization based on their own rules and specifications, which gives their firms a competitive advantage over other firms that would have to adjust to the new rules or standards.