NAFTA and GATT: How Trading Blocs Shape Global Free Trade
Regional free trade zones like NAFTA and the EU have been successful in recent years. This paper looks at whether these trading blocs help or hurt global free trade. It examines how different types of customs unions can either lead to trade wars or expand global trade. The researchers compare the impact of free trade blocs based on traditional comparative advantages versus economies of scale. They aim to see how trade patterns within the blocs affect trade relations among them.