After employing the trade intensity indices of non-members, which controls for the overall growth in members' trade relative to world trade, it is found that remarkable growth of the intra-regional trade of Mercosur has been accompanied by simultaneously increasing trade flows with non-member states such as Canada and the US. Using the case of Mercosur, the trend of intra-regional trade flows and of extra-bloc trade flows with the selected 2 countries, Canada and the US, after formation of Mercosur in 1991 is examined. The effects of the regional trade bloc on non-member countries are examined. After employing the trade intensity indices of non-members, which controls for the overall growth in members' trade relative to world trade, we find that the remarkable growth of the intra-regional trade of Mercosur has been accompanied by simultaneously increasing trade flows with non-member states such as Canada and U.S. Using the case of Mercosur, we examine the trend of intra-regional trade flows and of extra-bloc trade flows with the selected two countries, Canada and U.S., after formation of Mercosur in 1991. The Trade Effects on the Non-Member Countries of the Regional Integration: The Case of the Mercosur Trade Effects on the Non-Member Countries of the Regional Integration: The Case of the Mercosur, The

Trading blocs definition