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Is the integration process between Argentina and Brazil beneficial to competitive multilateral insertion? Analyses based on a traditional static approach tend to counter such a conclusion. However, several sectors are experiencing a simultaneous progression in bilateral trade preferences and in resulting comparative advantages. Most of these sectors contribute to the expansion of bilateral trade within specific sectors, with some making a substantial contribution to economies of scale. These observations conform to the models of the new international economy. Moreover, the competitive effects of this "new regionalism" lead to gains in productivity as a result of processes of both regional and multilateral opening, along with the encouragement of foreign investment, particularly in the automotive sector.