LES EFFETS DES NOUVEAUX ACCORDS DE LIBRE-COMMERCE EN AMÉRIQUE LATINE

This paper uses a gravity model and several cross-sectional analyses (1991-2003) to assess the effects of the new free trade agreements signed between Latin American countries. Our findings show evidence that Mercosur clearly boosts trade between Argentina and Brazil, much more so than the Andean Community does between its member countries. The greater success of the Argentina and Brazil industrial policies and the political instability of the Andean countries are two possible explanations. As for the Chile-Mercosur and Chile-Mexico Free trade areas, they cause an intermediate effect between both precedents. The recent period reflects lower intra-trade effects in a context of exchange rate crisis initiated by the Brazilian currency collapse. Finally, Mercosur constitutes an attraction for its partners and the core of a potential South American Free trade area.