Munich Personal RePEc Archive

Easing trade costs within Mercosul

Reiss, Daniel G (2012): Easing trade costs within Mercosul.


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Abstract The paper describes the joint policy of Brazil and Argentina regarding the currency use in bilateral trade. The Local Currency Payment System (SML) framework is investigated as an instrument of reducing trade costs by providing new financial integration mechanisms and its implications according to usual trade issues debate. We cut across different issues related to the SML rationale. Additionally, we describe and analyze the data available for the system showing that the SML use is more common to Brazilian exports than to Argentine ones.

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