A large area of free trade, formed through tariff, tax, or trade agreements, such as the EU. Buckley et al. (2007) World Econ. 30, 2 examine the link between globalization and the growth of trade blocs, and Glebe (2006) Technische U. München, Env. Econ. & Ag. Policy Gp, Discuss. Paper 022006 analyses the way the enlargement of a trade bloc will affect national welfare. ‘Mercosur’ is an economic and political agreement among Argentina, Brazil, Paraguay, Uruguay, and Venezuela (suspended December 2016) to promote the free movement of goods, services, and people among member states. Mercosur’s primary interest has been eliminating obstacles to regional trade, such as high tariffs and income inequalities (Klonsky et al. (2012) Council on Foreign Relations).