MERCOSUR'S CHANGE IN TRADE PATTERNS

Abstract

This paper examines the changes in Mercosur's trade patterns based on descriptive statistics, comparing the pre-integration period with the post-integration phase. The changes in imports and exports intra and extra-regionally at SITC three-digit level are analysed, in order to assess whether they are in tune with the bloc 'expected' comparative advantage. It also assesses the intra-bloc and extra-bloc trade intensities and propensities in quest of signs of either trade diversion or export diversion. The signs of export diversion are much more vivid than the traditional trade diversion, comprising approximately a third of the value exported to the rest of the world in the post-integration period.