Olarreaga, Marcelo; Soloaga, Isidro; Winters, L. Alan - C.E.P.R. Discussion Papers - 1999
). The first one explains CU formation through the willingness of integrating partners to exploit terms-of-trade effects …. Results suggest that in the case of the Common Market of the Southern Cone (Mercosur) both forces were important. Terms-of-trade … that the terms-of-trade externalities among Mercosur's members have been internalized in the Common External Tariff (CET). …