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The Political Economy of MERCOSUR

Published online by Cambridge University Press:  02 January 2018

Luigi Manzetti*
Affiliation:
Southern Methodist University, North-South Center, University of Miami

Extract

Recent literature on regional integration has stressed the key role that emerging trading blocs will have in shaping the world economy of the 21st-century. With the end of the Cold War, policymakers have refocused their attention on economic issues. Economic trends — such as rapid changes in research, technology, capital flow, and trade patterns — have assumed a new importance. Increasing competition in world markets has induced industrialized countries to cluster together in regional economic blocs. This has been the case with the European Community (EC), the North American Free Trade Agreement (NAFTA) signatories (the United States, Canada, and Mexico), and possibly Japan and its East Asian neighbors. However, these experiments in regional integration differ appreciably in nature. For instance, the EC explicitly seeks an economic and political union, whereas the NAFTA is simply a free trade area whose goal is the eventual elimination of restrictions on investment flows.

Type
Research Article
Copyright
Copyright © University of Miami 1993

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Footnotes

*

The author would like to thank Alcides Costa Vaz, Mario Granero, María Eugenia Mujica, and Jeff Stark for their assistance in writing the article, and Jane Marchi and four anonymous reviewers for their helpful comments. All errors and omissions are the responsibility of the author.

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