Integración de las Américas: Impactos Globales y Sectoriales para el Mercosur

Abstract

The purpose of the paper is to assess the costs and benefits of different integration options for the Mercosur with all other countries in the Americas. A multiregional, multisector CGE model is used to simulate the effects of several scenarios that are currently on debate. Alternative strategies are here analyzed: bilateral agreements of each of the Mercosur countries with the US; a South American Free Trade Area (SAFTA); and the Free Trade Area of the Americas (FTAA). Additionally, the paper compares the effects of agreements that lead to total trade liberalization with those that exclude the agricultural sector. The macro results of the simulations are negligible but they nevertheless indicate there is a significant impact on the specialization patterns of the Mercosur.