Strategies for Trade Liberalization in the Americas: A Report to ECLAC

Graciela Chichilnisky
The formation of trading blocks can help or hinder the global liberalization of trade. A determining factor is whether trade within the block is organized around traditional comparative advantages, or around economies of scale. The issue is of particular importance for NAFTA, and for a potential American free trade zone. Regional free trade agreements such as NAFTA can be either complements to, or substitutes for, the GATT negotiations. They are substitutes when the regional agreements...
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