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Strategic Foreign Trade Management: The Impact of Customs Administration on Trade Diversion in South America
Introduction: Regional economic integration in South America has strengthened trade among the member countries of the Southern Common Market (Mercosur). However, economic asymmetries and differences in customs policies continue to generate trade diversion processes that may affect the benefits derived from regional integration.
Methodology: The study adopted a quantitative, descriptive, and correlational approach based on secondary data obtained from the World Bank and international organizations specializing in foreign trade and regional integration. Econometric functional form models were employed to evaluate the relationship between exports and gross domestic product (GDP) per capita in Argentina, Brazil, Paraguay, and Uruguay.
Results: The findings revealed heterogeneous behavior across the analyzed economies. Positive export elasticities were identified in Brazil and Uruguay, whereas Argentina and Paraguay exhibited predominantly negative elasticities. In addition, customs and trade policies were found to significantly influence trade diversion processes by shaping both intra- and extra-regional trade flows.
Conclusions: Productive asymmetries and the degree of customs modernization are key determinants of the benefits derived from regional economic integration. Strengthening institutional capacities and harmonizing customs policies can therefore enhance the competitiveness and efficiency of Mercosur.
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