According to Alexander Yeats, the trade diversion effects of Mercosur outweigh its trade creation effects.

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Alexander Yeats, a former World Bank economist, has published research showing that the trade diversion effects of Mercosur, a South American trade bloc, outweigh its trade creation effects. This means that the trade bloc diverts trade away from more efficient producers outside the bloc, leading to higher prices and lower economic welfare overall.

According to Alexander Yeats, the Trade Diversion Effects of Mercosur