The regional integration process in the Southern Cone was generally viewed as making fairly good progress. In fact, after frustrated attempts, the Mercosul South Cone Common Market was firming up as the first integration project in Latin America to achieve a reasonable level of success. The range of options is currently far broader, and the probability of the occurrence of any specific scenario requires careful qualification. Together with a number of the 'non-traditional' gains associated with the sweeping integration processes, these impacts are stressed mainly by those who urge and support integrationist initiatives. The formation of free trade areas or customs unions may either increase or diminish members' welfare. The benefits generated by the integration process depend on the extent of the 'trade creation' effect, while its costs are associated with the scope of the 'trade diversion' effect. In Mercosul, static effects have been analysed through a number of estimates.