a during the 1990s. Another reason that regional integration occurs is that governments can seek to lower trade barriers between or among the countries involved. This was the reason that the European Economic Community was formed, for example. In still other cases, neighboring countries may decide to give each other privileged trade status in order to increase trade with each other in the expectation of such a move leading to increased prosperity. This approach to integration was particularly popular during the 1960s and 1970s (Flam, 1995, p. 460).
Economic integration can lead to harmful effects on participants' trade relations with third countries not included in the integrated group. However, Article 24 of the General Agreement on Tariffs and Trade (GATT) sets forth spec
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