Latin American countries are currently confronted with two main options concerning their prospects for regional integration. The first option relates to the choice of partners. Costs and benefits of so-called “South-South” arrangements – i.e., intra-regional arrangements such as the Common Market of the South (Mercosur) – need to be compared with those of “North-South” arrangements – i.e., inter-regional arrangements such as the Free Trade Area of the Americas (FTAA). The second option regards the depth of integration: the desirability of free trade arrangements has to be weighed vis-à-vis deeper forms of integration, which are likely to be more costly and lengthy to undertake.