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No AccessStand Alone Books1 Feb 2013The New Regionalism in Trade PolicyAn interpretive summary of a conferenceAuthors/Editors: Jaime de Melo and Arvind PanagariyaJaime de Melo and Arvind Panagariyahttps://doi.org/10.1596/0-8213-2294-XSectionsAboutPDF (0.1 MB) ToolsAdd to favoritesDownload CitationsTrack Citations ShareFacebookTwitterLinked In Abstract:Regionalism is once again being viewed as a solution to the major international economic problems of our times. Slow progress of the negotiations at the Uruguay Round of the GATT has led some economists to conclude that a division of the world into three trading blocs -- Europe, the Americas, and East Asia -- is the fastest road to multilateral free trade. They argue that negotiations for free trade are far more likely to succeed when conducted among three parties rather than among 154. For many countries, the proliferation of nontariff barriers in the industrial world has made regional integration an attractive policy option. However, the experience with South-South integration has been discouraging, and some economists claim that any temptation to promote such schemes in the future should be resisted. As for North-North integration, it has been widely successful in Europe. Intraregional trade expanded greatly, but not at the expense of trade with nonpartners, which also grew rapidly. And European integration has greatly diminished, if not eliminated, the possibility of future internal conflicts. Looking to the future, North-South integration holds much promise for developing countries. Regional arrangements of this type can solidify past reforms, guarantee future access to a large market, and stimulate growth via increased direct foreign investment, more intense competition and faster technological diffusion. 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