In 2010, after several years of being stalled, negotiations between MERCOSUR (the Common Market of the Southern Cone) and the European Union (EU) to build a free-trade agreement (FTA) were resumed. This FTA is expected to have an important impact on MERCOSUR economies, especially if both blocs...

Most researchers focus on the political economy (interest group pressures) approach to analyzing why customs unions are formed, but terms-of-trade effects were also important in formation of the Common Market of the Southern Cone (Mercosur). Terms-of-trade externalities among Mercosur's members...

In the first half of 2001, the government of Argentina undertook some changes in the import tariffs of some products, eroding the Common External Tariff (CET) of Mercosur. In particular, the tariff rates of capital goods were reduced to zero, an action with potential negative implications for...

This paper looks empirically into the behavior of multinational firms in international oligopolistic markets with trade balance constraints. I show how a particular form of non-tariff barrier applied at the firm level can lead to an increase in trade flows in the presence of intra-firm strategic...

MERCOSUR is one of the most important examples of renewed world-wide interest in regional trade agreements. It may be seen as a consolidation of unilateral reforms undertaken in conjunction with major macroeconomic adjustments. The paper reviews the objectives of MERCOSUR and assesses its...

In the first half of 2001, the government of Argentina undertook some changes in the import tariffs of some products, eroding the Common External Tariff (CET) of Mercosur. In particular, the tariff rates of capital goods were reduced to zero, an action with potential negative implications for...