ABSTRACT
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.
