The slow pace of multilateral negotiations has given a greater impetus to regional trade arrangements (RTA) as … countries are eager to take advantage of welfare enhancing trade creation effect of trade liberalization. At the same time, this … approach raises concerns as due their discriminatory nature, RTAs lead to welfare reducing trade diversion from third countries …

Preferential trade agreements could lead to a reallocation of resources across sectors and countries. Production …, empirical evidence on South-South trade agreements is limited. The purpose of this paper is to fill this gap in the empirical …, and Uruguay over the period 1985-1998. We find that deepened preferential trade liberalization has fostered a reshaping of …