MERCOSUR is an original feature of the Latin American Integration process which occurs in the context of unilateral trade liberalisation of its member countries. During the 1990- 1994 period, intrazone trade has increased faster than total trade of members. This has been true for all categories of products. Concerning agricultural products, the marked increase in trade is mainly due to the tradecreating influence of Mercosur, with countries basing their respective competitiveness on comparative advantage. These countries are complementary and, given the size of its market, Brazil, while remaining very competitive for processed food products, appears as a "natural customer" for the other three members. Since trade also concerns some sensitive products it is necessary to devise compensation procedures and rules for harmonisation.
