Thus when the Latin bloc was launched in 1991, skeptics had a field day. This time, however, the four nations involved were already deregulating and privatizing their economies and pulling down barriers to foreign trade. The idea of unifying these free-market trends in a trade pact made perfect sense. Since Mercosur went into effect, the most radical shift in trading priorities has taken place in Brazil and Argentina, the pact's two giants. The impact on Argentina has been even greater.
Trade is only part of the story.
Investment across borders is also booming. Before Mercosur, there were fewer than 20 Brazilian companies with offices, plants or subsidiaries in Argentina. Chile, already a big investor in Argentina, is expected to expand that investment greatly in future years. But the most frenzied investment is in automobiles. For local manufacturers, the best news is that strategic planning can now range far beyond the home market.