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A feature of the global economy over the last half-century has been the proliferation of regional trading arrangements (RTAs) and the ongoing debate over the relationship between regionalism and multilateralism. The economic analysis of regionalism has increasingly come to focus on fundamental elements of international economics. The economic analysis of RTAs evolved substantially following Viner's key insight, which highlighted the possibility of trade diversion. During the 1980s and 1990s the analysis broadened to include trade-related issues and other areas. The debate currently thrives as the European Union expands eastwards, the USA looks to strengthen hemispheric relations and East Asian countries consider regional arrangements more seriously after the 1997 regional crisis. This volume in the "International Library of Critical Writings in Economics" series is aimed at postgraduates and should be a helpful reference on the topic of economic analysis of regional trading arrangements.